USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading downwards, just like we expected, corrective wave Y (coloured blue) of the bigger wave (4) (coloured green) has finished its development. During the Friday's Asian and European sessions we could observe descending movement from 1.0230 towards the 1.0180 level and we can consider this move as the end of the wave (4) (coloured green). Therefore, during the early New York session this currency did not manage to hold this levels and the price has retraced back to 1.0222 level. At the moment the USD/CAD pair is trading around 1.0245 and we expect to see the price above 1.0455 this week. 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 1.0460 (100% of wave 1). To reduce the risk, we can use support at 1.0180 level as stop loss.
Support and Resistance
(S3) 1.0122 (S2) 1.0151 (S1) 1.0172 (PP) 1.0201 (R1) 1.0222 (R2) 1.0251 (R3) 1.0272
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0200 with stop loss at 1.0180 and take profit at 1.0460 are recommended.
