USD/CAD Elliott Wave
Since our last update, the USD/CAD pair was trading sideways, impulsive wave 1 (coloured blue) of the bigger (5) (coloured green) was developing. Yesterday during the early Asian session we could observe slight ascending movement from 1.0263 towards 1.0282 level and we can consider this movement as the end of the sub-wave 1 (coloured blue) of the (5) wave. Therefore, during the European and New York sessions this currency did not manage to hold this levels and the price dropped below 1.0250 area. We can consider this movement as the end of the corrective sub-wave 2 (coloured blue). At the moment the USD/CAD pair is trading around 1.0270 level and we expect to see the price above 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 1.0250 level as stop loss.
Support and Resistance
(S3) 1.0206 (S2) 1.0227 (S1) 1.0241 (PP) 1.0262 (R1) 1.0276 (R2) 1.0297 (R3) 1.0311
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 1.0250 are recommended.
