USD/CAD Elliott Wave
For the last few weeks the USD/CAD pair was trading downwards, corrective wave Y (coloured blue) of the bigger wave (4) (coloured green) was developing. During the Tuesday's Asian session we could observe ascending movement from 1.0189 towards 1.0209 level. Therefore, during the European and New York sessions this currency did not manage to hold this level and the price has retraced to 1.0158 level. We can consider this movement as the end of the corrective wave (4) (coloured green). Today the USD/CAD pair is trading around 1.0174 level and we expect to see the price above 1.0420 area in the next few days. In accordance with our wave rules and taking into account that wave 5 should retrace 100% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0441 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0099 level as stop loss.
Support and Resistance
(S3) 1.0147 (S2) 1.0153 (S1) 1.0157 (PP) 1.0163 (R1) 1.0167 (R2) 1.0173 (R3) 1.0177
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0190 with stop loss at 1.0099 and take profit at 1.0441 are recommended.
