14.03.201413:06 Forex Analysis & Reviews: Elliott Wave Analysis of USD/CAD for March 12, 2014

USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading downwards, corrective wave (ii) (coloured green) of the bigger wave [c] (coloured black) has extended developing. In the 1-hour chart above, we can see strong descending movement from 1.1153 towards the 1.1042 level, we can now call the (ii) wave as the Expending Flat pattern (3-3-5). While the price remains above the 1.1040 level, we are going to call the impulsive (iii) wave as already started, and we are going to look for more buying opportunity in the next pullback. In accordance with our wave rules and taking into account that wave (iii) should extend 161.8% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 1.1327 (161.8% of wave (i)).In the higher time-frames, the USD/CAD pair is again calling that we are in the upwards trend, and swing traders can also try to join the buyers at the pullbacks, but for resistance we can look for the 1.1400 level.

Support and Resistance
(S3) 1.0954, (S2) 1.0998, (S1) 1.1033, (PP) 1.1077, (R1) 1.1112, (R2) 1.1156, (R3) 1.1191.

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.1050 with stop loss at 1.1042 and take profit at 1.1327 are recommended.