USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading in a downward channel, corrective wave (A) (coloured green) of the bigger (2) wave (coloured red) was developing. Yesterday during the Asian session we could observe descending movement toward the 0.9947 level and we can consider this move as the end of the 5 wave (Coloured blue) of the bigger (A) wave (coloured green). Therefore, during the European and New York sessions when development of the (B) wave (coloured green) starts this major pair starts pushing higher reaching a new highs at 0.9992 level. We can consider this move as the end of the sub-wave A of the bigger (B) wave. At the moment the USD/CAD pair is trading in a final C wave and we expect to see the price above 1.0000 level soon. In accordance with our wave rules and taking into account that the wave C should retrace 100% of the wave A, we can define the potential targets with measuring wave A with take profit at 1.0020 (100% of wave A). To reduce the risk, we can use invalidation at 0.9947 level as stop loss.
Support and Resistance
(S3) 0.9930 (S2) 0.9947 (S1) 0.9958 (PP) 0.9975 (R1) 0.9992 (R2) 1.0003 (R3) 1.0020
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9980 with stop loss 0.9947 and take profit at 1.0020 are recommended.
