USD / CAD overview and current day forecast
At the beginning of May, the chart of the main pair of the Canadian dollar has changed in the direction of the short-term trend. The nature of motion has a pronounced impulse form. On the daily scale of the chart, a descending zigzag from January 20 is clearly traced, the latter of which continues the formation. Preliminary calculation of the probable target of the wave assumes the continuation of a decrease, at least by 3 price figures from current values.
Today, in the morning, it is more likely that the increase in prices started yesterday. Within the resistance zone, we can expect for a change in direction. Continuation of the downward phase of movement is expected towards the end of the day.
Boundaries of resistance zones:
- 1.3010 / 40
Boundaries of support zones:
- 1.2930 / 1.2900
Overview of #USDX (US dollar index) and forecast for the current day
The direction of the short-term trend of the US currency index is set by the final part of the downward wave model, which has been counting since March 2015. The preliminary calculation indicates a possible zone of completion in the area of local low level region of April 2016. Option to continue the trend downward will remain relevant, however, in this section of the chart one can expect the formation of a counter correction.
The downward pullback that began yesterday is likely to end in the area of the support zone. In the future, the dollar's fluctuations will again create an upward trend. The expected range of the daily rise does not exceed the level of the resistance zone.
Boundaries of resistance zones:
- 96.70 / 80
Boundaries of support zones:
- 96.15 / 05
Explanation of the figures: For simplified wave analysis, a simple waveform is used that combines 3 parts (A; B; C). Of these waves, all kinds of correction are composed and most of the impulses. On each considered time frame the last, incomplete wave is analyzed.
The areas marked in the graphs are indicated by the calculation areas in which the probability of a change in the direction of motion is significantly increased. Arrows indicate the wave counting according to the technique used by the author. The solid background of the arrows indicates the formed structure, the dotted line indicates the expected wave motion.
Note: The wave algorithm does not take into account the duration of the tool movements in time. The forecast is not a trading signal! To conduct a trade transaction you need confirmation signals used by your trading systems.
