09.04.201415:23 Forex Analysis & Reviews: Elliott Wave Analysis of USD/CAD for April 09, 2014

Long-term review

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USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has continued to trade downwards, impulsive wave [v] (coloured black) of the bigger wave C (coloured blue) has been developing. In the 1-hour chart of the USD/CAD pair above, we can see that descending movements from the 1.1045 level is taking a shape of the Ending Diagonal, this is a clear sign that (X) wave is going to be over soon, and that's why we are going to look for only buying opportunity in the pair. A break above the 1.1000 level will be a good entry long signal, and for stop loss we are going to use last low at the 1.0900 level.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 1.1000 with stop loss at 1.0900 and take profit at 1.1495 are recommended.

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