USD/CAD Elliott Wave
For the last two days the USD/CAD pair was trading downwards, corrective wave 2 (coloured blue) of the bigger wave (3) (coloured green) was developing. Yesterday, during the European session we could observe descending movement from 1.0275 towards the 1.0238 level and we can consider this movement as the end of the corrective wave (A) (coloured pink). Therefore, during the New York session this commodity currency did not manage to hold this positions and the price has retraced to 1.0264 level. At the moment the USD/CAD pair is trading around 1.0220 level and we expect to see the price higher very soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0368 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0180 level as stop loss.
Support and Resistance
(S3) 1.0216 (S2) 1.0232 (S1) 1.0242 (PP) 1.0257 (R1) 1.0273 (R2) 1.0283 (R3) 1.0298
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 1.0368 are recommended.
