USD/CAD Elliott Wave
Since our invalidation point was broken yesterday, today we consider the alternate wave count for the USD/CAD pair. On the daily chart we can see a development of triangle pattern, but now we got only 3 finished waves, and this give us plenty of room for our future trades. We are currently in the sub-wave C (coloured red) of the wave (D) (coloured blue) and we expect to see the price lower for the next few weeks. In accordance with our wave rules and taking into account that wave D should retrace 61.8% of waves B, we can define the potential targets with measuring wave B with take profit at 0.9838 (61.8% of wave B). To reduce the risk, we can use resistance point at 1.0233 level (end of B wave) as stop loss.
Support and Resistance
(S3) 0.9998 (S2) 1.0040 (S1) 1.0071 (PP) 1.0113 (R1) 1.0144 (R2) 1.0186 (R3) 1.0217
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0000 with stop loss at 1.0233 and take profit at 0.9838 are recommended.
