USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading downwards, just like we expected, impulsive wave (1) (coloured blue) of the bigger C wave (coloured red) has been developing. During the Thursday's Asian and European sessions we could observe strong descending movement from 1.0276 towards 1.0230 level and we can consider this move as the end of the impulsive wave (1) (coloured blue). Therefore, during the New York session this currency did not manage to hold this level and the price has retraced back to 1.0270 level. We can consider this move as the end of the wave (2) (coloured blue). At the moment the USD/CAD pair is trading around 1.0235 and we expect to see the price below 1.0160 level 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 A with take profit at 1.0163 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0280 as stop loss.
Support and Resistance
(S3) 1.0186 (S2) 1.0207 (S1) 1.0233 (PP) 1.0254 (R1) 1.0280 (R2) 1.0301 (R3) 1.0327
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 1.0280 and take profit at 1.0163 are recommended.
