USD/CAD Elliott Wave
For the last few weeks the USD/CAD pair has been trading downwards, corrective wave Y (coloured blue) of the bigger wave (4) (coloured green) was developing. Yesterday, during the Asian session we could observe ascending movement from 1.0144 towards the 1.0165 level. Therefore, during the European and New York sessions this currency did not manage to hold bullish mood and the price has dropped to the 1.0103 level. We can consider this movement as the end of the corrective wave (4) (coloured green). At the moment the USD/CAD pair is trading around 1.0138 and we expect to see the price 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 1.0403 (100% of wave 1). To reduce the risk, we can use support at 1.0060 level as stop loss.
Support and Resistance
(S3) 1.0036 (S2) 1.0070 (S1) 1.0098 (PP) 1.0132 (R1) 1.0160 (R2) 1.0194 (R3) 1.0222
Trading аorecast
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 1.0060 and take profit at 1.0403 are recommended.
