_source!.png)
USD/CAD Elliott Wave
Last week the USD/CAD pair was trading upwards, impulsive wave (1) (coloured green) of the bigger wave (C) (coloured red) was developing. During the Monday's Asian session we could observe ascending movement towards the 0.9944 level. Therefore, during the European and New York session the USD/CAD pair did not manage to hold this level and price dropped to the new low at 0.9909 level. We can consider this movement as the end of the wave 4 (coloured blue). At the moment we are at the start of the impulsive wave 5 and we expect to see price higher today when market opens. In accordance with our wave rules and taking into account that the wave 5 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9997 (100% of wave 1). To reduce the risk, we can use invalidation at 0.9880 level as stop loss.
Support and Resistance
(S3) 0.9869 (S2) 0.9888 (S1) 0.9907 (PP) 0.9926 (R1) 0.9945 (R2) 0.9964 (R3) 0.9983
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9915 with stop loss 0.9880 and take profit at 0.9997 are recommended.
