07.04.201411:25 Forex Analysis & Reviews: Elliott Wave Analysis of USD/CAD for April 07, 2014

Long-term review

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USD/CAD Elliott Wave
Last week, the USD/CAD pair spent in a range with a downside bias. In the 1-hourly chart of the pair, we can observe that lower trend line of the Triangle has given up in the early Friday's New York session, this confirm end of the [iv] wave. From the 1.1045 level, we have four sub-waves and we need one more to complete the FLAT correction, our focus this week is going to be on the buying opportunity in the Z wave (coloured red). In accordance with our wave rules and taking into account that wave Z should extend 100% of wave W, we can define the potential targets with measuring wave W with take profit at 1.1495 (100% of wave W). Traders who are holding shorts, should try to book some profit now and look for the 1.0950 level as the final targets.

Support and Resistance
(S3) 1.0967, (S2) 1.0985, (S1) 1.1009, (PP) 1.1027, (R1) 1.1051, (R2) 1.1069, (R3) 1.1093.

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 1.0950 with stop loss at 1.0800 and take profit at 1.1495 are recommended.

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