NZD/CAD Wave Analysis for January 08, 2012
NZD/CAD Elliott Wave
Last week the NZD/USD pair was trading upwards, corrective wave (2) (coloured green) of the bigger (C) wave (coloured red) was developing. During the Monday’s Asian session we could observe descending movement from 0.8322 toward the 0.8287 level. Therefore, during the European and New York sessions the NZD/USD pair did not manage to hold this level, and the price started pushing higher reaching a new daily high at 0.8375 level. Today during the early Asian session this commodity pair continued trading in a bullish mood and the price reached 0.8378 level where we think corrective (2) wave ended. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.8082 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.8395 level as stop loss.
Support and Resistance
(S3) 0.8254 (S2) 0.8288 (S1) 0.8310 (PP) 0.8344 (R1) 0.8378 (R2) 0.8400 (R3) 0.8434
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.8350 with stop loss 0.8395 take profit at 0.8082 are recommended.
The material has been provided by Instaforex Company – instaforex.com