FX.co ★ Elliott Wave Analysis of USD/CAD for April 17, 2014

USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has continued to trade upwards, impulsive wave iii (coloured black) of the bigger wave (iii) (coloured blue) has been developing. In the 1-hour chart of the pair above, we can observe that corrective wave ii (coloured black) has completed at the 1.0955 level, and from there we can see upward movement that make us believe that iii wave is going to become extended wave. While price remains above the 1.0955 level, we are going to look for the buying opportunity at the break above 1.1010 level, this will be a fresh entry signal. 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 1.1076 (161.8% of wave (i)).

Support and Resistance
(S3) 1.0896, (S2) 1.0927, (S1) 1.0970, (PP) 1.1001, (R1) 1.1044, (R2) 1.1075, (R3) 1.1118.

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 1.1010 with stop loss at 1.0955 and take profit at 1.1076 are recommended.