USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading sideways, corrective wave (2) (coloured blue) of the bigger wave C (coloured red) has been developing. During the Monday's European session we could observe strong ascending movement from 1.0247 towards the 1.0284 level (Monday's high). Therefore, during the New York session this commodity currency did not manage to hold this levels and the price has dropped to the 1.0252 area. At the moment the USD/CAD pair is testing Monday's high and we expect to see the price lower in the next few hours. 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 1.0187 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0292 as stop loss.
Support and Resistance
(S3) 1.0202 (S2) 1.0225 (S1) 1.0240 (PP) 1.0263 (R1) 1.0278 (R2) 1.0301 (R3) 1.0316
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0260 with stop loss at 1.0292 and take profit at 1.0187 are recommended.
