USD/CAD Elliott Wave
Last week the USD/CAD pair has finished development of the impulsive wave (5) (coloured blue) and we could observe ascending movement for the start of the wave (A) (coloured blue). During the Friday's Asian and European sessions we could observe ascending movement from 1.0063 towards the 1.0099 level. Therefore, during the New York session this major currency has continued trading in a bullish mood and the price has reached a new daily high at 1.0151 level. We can consider this move as the end of the wave 1 (coloured green). At the moment the USD/CAD pair is trading around 1.0119 level and we expect to see the continuation of bearish mood for the next few weeks. In accordance with our wave rules and taking into account that wave 2 should retrace 61.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0066 (61.8% of wave 1). To reduce the risk, we can use resistance point at 1.0151 level as stop loss.
Support and Resistance
(S3) 1.0013 (S2) 1.0048 (S1) 1.0070 (PP) 1.0105 (R1) 1.0140 (R2) 1.0162 (R3) 1.0197
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0110 with stop loss at 1.0151 and take profit at 1.0066 are recommended.
