USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading higher to finish corrective wave B (coloured red) of the triangle D wave (coloured blue). Yesterday, during the Asian and European sessions we could observe strong ascending movement from 1.0133 towards the 1.0224 level. Therefore, during the New York session this commodity pair has continued to trade in a bullish mood and we could observe the price reaching 1.0258 level. We can consider this move as the end of the wave B (coloured red). At the moment the USD/CAD pair is trading around 1.0240 and we expect to see the price below 0.9890 in the next few trading sessions. 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 1.0290 level as stop loss.
Support and Resistance
(S3) 1.0044 (S2) 1.0089 (S1) 1.0169 (PP) 1.0214 (R1) 1.0294 (R2) 1.0339 (R3) 1.0419
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0230 with stop loss at 1.0290 and take profit at 0.9838 are recommended.
