USD/CAD Elliott wave
Since our last analysis the USD/CAD pair has been trading upwards, corrective wave (4) (coloured blue) of the bigger wave C (coloured red) has been developing. Yesterday, during the Asian and European session we could observe descending movement from 1.0083 towards the 1.0058 level and we can consider this move as the end of the sub-wave B (coloured green) of the (4) wave (coloured blue). Therefore, during the New York session this currency did not manage to hold this levels and price has retraced all the way to 1.0108 level. At the moment the USD/CAD pair is trading around 1.0117 level and we are expecting to see price below 1.0000 level very soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 0.9996 (61.8 % of wave 3). To reduce the risk, we can use resistance at 1.0200 as stop loss.
Support and resistance
(S3) 1.0020 (S2) 1.0039 (S1) 1.0071 (PP) 1.0090 (R1) 1.0122 (R2) 1.0141 (R3) 1.0173
Trading forecast
Proceeding from Elliott wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0100 with stop loss at 1.0200 and take profit at 0.9996 are recommended.
