USD/CAD Elliott Wave
For the last few weeks the USD/CAD pair was trading in a downwards channel, corrective wave Y (coloured blue) of the bigger wave (4) (coloured green) was developing. Yesterday during the Asian session we could observe descending movement from 1.0173 towards 1.0141 level and we can consider this movement as the end of the corrective (4) wave (coloured green). Therefore, during the European session this commodity currency did not manage to hold this level and the price started pushing higher and reached new daily high at 1.0173 level. Today the USD/CAD pair is trading around 1.0158 level and we expect to see the price pushing higher for the next few weeks. 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 1.0425 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0099 level as stop loss.
Support and Resistance
(S3) 1.0131 (S2) 1.0142 (S1) 1.0149 (PP) 1.0159 (R1) 1.0170 (R2) 1.0177 (R3) 1.0187
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0165 with stop loss at 1.0099 and take profit at 1.0425 are recommended.
