USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading downwards, corrective wave Y (coloured blue) of the bigger wave (4) (coloured green). Yesterday during the Asian and half of the European session we could observe descending movement from 1.0158 towards the 1.0124 and we can consider this movement as the end of the corrective wave (4) (coloured green). Therefore, during the New York session this currency did not manage to hold this level and the price has retraced all the way to the 1.0158 area. We can consider this bullish move as the end of the sub-wave (1) (coloured pink). At the moment the USD/CAD pair is trading around 1.0135 level and we expect to see the price above 1.0175 area in the next few sessions. 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 1.0190 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0100 level as stop loss.
Support and Resistance
(S3) 1.0081 (S2) 1.0134 (S1) 1.0124 (PP) 1.0145 (R1) 1.0167 (R2) 1.0188 (R3) 1.0210
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0140 with stop loss at 1.0100 and take profit at 1.0190 are recommended.
