The USD/CAD pair 4H chart revealed a strong bearish rejection of price level 1.0050, which pushed the USD/CAD pair downside towards 0.9990.
The lower limits of the Violet & Blue channels at 0.9990 were tested providing strong support for the USD/CAD pair.
Bullish rejection towards 0.9990 allowed USD/CAD to initiate a new bullish swing towards 1.0225 establishing a significant support level at 1.0050 and the newer one at 1.0125.
Retesting of Price Level 1.0125 will be also a retesting of the backside of the broken violet channel. However it’s considered risky to take bullish opportunity without obvious bullish price action.
On the Hourly chart, USD/CAD is moving within narrow ranged bullish channels which are being tested today with the lower limit of the Yellow channel at 1.0165.
Breakdown of 1.0165 opens the way for Price Levels 1.0125 initially, then probably 1.0050. However, rejection with bullish price action towards this level will probably be a good BUY entry towards new higher levels.
It’s important to note that the pair has an Intraday Resistance level at 1.0185 corresponding to the backside of the broken violet channel which constitutes a valid SELL entry with SL located above 1.0230.

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The USD/CAD pair 4H chart revealed a strong bearish rejection of price level 1.0050, which pushed the USD/CAD pair downside towards 0.9990.
The lower limits of the Violet & Blue channels at 0.9990 were tested providing strong support for the USD/CAD pair.
Bullish rejection towards 0.9990 allowed USD/CAD to initiate a new bullish swing towards 1.0225 establishing a significant support level at 1.0050 and the newer one at 1.0125.
Retesting of Price Level 1.0125 will be also a retesting of the backside of the broken violet channel. However it’s considered risky to take bullish opportunity without obvious bullish price action.
On the Hourly chart, USD/CAD is moving within narrow ranged bullish channels which are being tested today with the lower limit of the Yellow channel at 1.0165.
Breakdown of 1.0165 opens the way for Price Levels 1.0125 initially, then probably 1.0050. However, rejection with bullish price action towards this level will probably be a good BUY entry towards new higher levels.
It’s important to note that the pair has an Intraday Resistance level at 1.0185 corresponding to the backside of the broken violet channel which constitutes a valid SELL entry with SL located above 1.0230.

If you like my articles, please vote for me in Analyst of the Year Contest by clicking here .

The material has been provided by Instaforex Company – instaforex.com

GBP/JPY Elliott Wave
For the last few days the GBP/JPY pair was developing impulsive wave 3 (coloured blue). Yesterday during European session we could observe a descending move toward the 126.90 level. Therefore during the New York session we could observe strong bearish mood in this currency pair and price drop to 125.10. Today during the early Asian session price continued to fall and we could observe price at the 124.59 level. We can consider this move as end of wave 3 (coloured blue). Presently we are at the start of the 4 wave. In accordance with our wave rules and taking into account that the wave 4 retraces 161.8% of the wave 2, we can define the potential targets with measuring 2 wave with Take Profit at 127.37 (161.8% of wave 2). The support level at the 124.50 level can be used as Stop Loss. Also it is necessary to consider the data concerning the GBP and JPY G8 Meetings that can affect the rate of the pair.

Support and Resistance levels
(S3) 123.29 (S2) 124.37 (S1) 125.04 (PP) 126.12 (R1) 127.20 (R2) 127.87 (R3) 128.95

Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 125.50 with Stop Loss at 124.50 and Take Profit at 127.37 are recommended

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