USD/CAD Elliott Wave
Last week the USD/CAD pair has been trading downwards, impulsive wave (3) (coloured blue) of the bigger wave C (coloured red) was developing. During the Friday's European session we could observe small ascending movement from 1.0180 towards the 1.0213 level and we can consider this movement as the end of the corrective sub-wave 4 (coloured green) of the (3) wave (coloured blue). Therefore, during the New York session when development of the final wave 5 (coloured green) started this currency did not manage to hold this levels and the price has retraced back to 1.0157 area. At the moment the USD/CAD pair is trading around 1.0140 and we expect to see the price higher when development of the (3) wave ends (our target 261.8% of 3 vs. 1). In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.0188 (38.2 % of wave 3). To reduce the risk, we can use support level at 1.0100 as stop loss.
Support and Resistance
(S3) 1.0091 (S2) 1.0124 (S1) 1.0147 (PP) 1.0180 (R1) 1.0203 (R2) 1.0236 (R3) 1.0259
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0130 with stop loss at 1.0100 and take profit at 1.0188 are recommended.
