USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading downwards, corrective wave (4) (coloured green) of the bigger wave (3) (coloured red) was developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0294 towards the 1.0254 level. Therefore, during the New York session this commodity currency has continued trading in a bearish mood and the price reached a new daily low at 1.0248 level. We can consider this movement as the end of the Y wave (coloured blue) of the bigger wave (4) (coloured green). At the moment the USD/CAD pair is trading around 1.0277 level and we expect to see the price around 1.0500 level in the next few sessions. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0510 (100% of wave 1). To reduce the risk, we can use support at 1.0097 level as stop loss.
Support and Resistance
(S3) 1.0203 (S2) 1.0228 (S1) 1.0243 (PP) 1.0268 (R1) 1.0283 (R2) 1.0308 (R3) 1.0323
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0280 with stop loss at 1.0097 and take profit at 1.0510 are recommended.
