FX.co ★ Elliott Wave Analysis of USD/CAD for January 20, 2014

USD/CAD Elliott Wave
After a strong upward movements in the early January, the USD/CAD pair traded sideways last week.You can see on the 1-hour chart above that we are tracking this sideways movements from the 1.0991 level asthe flat correction that currently have two waves completed, we are going to look for one more push lower todaywhile the price stays below the last high at the 1.0991 level. In accordance with our wave rules and taking intoaccount that wave c should retrace 161.8% of wave a, we can define the potential targets with measuring wave awith take profit at 1.0837 (161.8% of wave a). Swing traders should wait for the end of the b wave (colouredred) before they enter a long positions.

Support and Resistance
(S3) 1.0873 (S2) 1.0899 (S1) 1.0930 (PP) 1.0956 (R1) 1.0987 (R2) 1.1013 (R3) 1.1044

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why shortpositions at the level of 1.0940 with stop loss at 1.0991 and take profit at 1.0837 are recommended.