FX.co ★ Elliott Wave Analysis of USD/CAD for March 26, 2014

USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading slightly downwards, just like we expected, corrective wave [ii] (coloured black) of the bigger wave A has been developing. In the 1-hour chart of the pair, we can see that [ii] wave is close to our potential entry points, 1.1150 - 1.1120 area, wave [ii] have enough sub-waves already, so we should see buyers appearing in the market soon. While this commodity currency remain above the 1.1020 level, our current stop loss, all focus will be on a more higher movements in the [iii] wave. 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 1.1527 (161.8% of wave [i]). 

Support and Resistance
(S3) 1.1087, (S2) 1.1120, (S1) 1.1143, (PP) 1.1176, (R1) 1.1199, (R2) 1.1232, (R3) 1.1255. 

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 1.1150 with stop loss at 1.1020 and take profit at 1.1527 are recommended.