USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading side-ways, corrective wave 2 (coloured green) of the bigger wave (3) (coloured blue) has finished its development. During the Wednesday's European session we could observe descending movement from 1.0271 towards the 1.0253 level. Therefore, during the early New York session this currency pair found support and we could observe strong bullish mood that brought the price to 1.0277 level. We can consider this movement as the end of the corrective wave 2 (coloured green). Today the USD/CAD pair is trading lower, around 1.0226 level and we expect to see the continuation of the bearish mood for 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 1.0187 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0255 as stop loss.
Support and Resistance
(S3) 1.0209 (S2) 1.0228 (S1) 1.0240 (PP) 1.0259 (R1) 1.0271 (R2) 1.0290 (R3) 1.0302
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0220 with stop loss at 1.0255 and take profit at 1.0187 are recommended.
