USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading downwards, impulsive wave 3 (coloured green) of the bigger wave (3) (coloured blue) has started its development. During the Tuesday's Asian and European sessions we could observe ascending movement from 1.0253 towards the 1.0284 level and we can consider this move as the end of the corrective wave (2) (coloured blue). Therefore, during the New York session this currency did not manage to hold this levels and the price has dropped to the new daily low at 1.0250 level. We can consider this move as the end of the sub-wave 1 (coloured green) of the (3) wave (coloured blue). At the moment the USD/CAD pair is trading around 1.0262 and we expect to see the price below 1.0200 very soon. In accordance with our wave rules and taking into account that 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) 1.0210 (S2) 1.0230 (S1) 1.0244 (PP) 1.0264 (R1) 1.0278 (R2) 1.0298 (R3) 1.0312
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0240 with stop loss at 1.0292 and take profit at 1.0187 are recommended.
