USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair was trading upwards, just like we expected, impulsive wave 1 (coloured blue) of the bigger wave (5) (coloured green) was developing. During the Friday Asian and European sessions we could observe strong upward movement from 1.0156 towards 1.0172 level. Therefore, during the New York session this commodity currency has continued trading in a bullish mood and the price has reached a new two-day high at 1.0178 level. At the moment the USD/CAD pair is trading around 1.0170 and we expect to see the price above 1.0430 area this week. 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 1.0425 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0100 level as stop loss.
Support and Resistance
(S3) 1.0133 (S2) 1.0145 (S1) 1.0157 (PP) 1.0169 (R1) 1.0181 (R2) 1.0193 (R3) 1.0205
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 1.0100 and take profit at 1.0425 are recommended.
