USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading upwards, just like we expected, impulsive wave 5 (coloured red) of the bigger wave (3) (coloured green) has been developing. During the Friday's Asian and European sessions we could observe ascending movement from 1.0175 towards the 1.0244 level. Therefore, during the New York session this commodity currency has continued trading in a bullish mood and the price has reached a new high at 1.0310 level. At the moment the USD/CAD pair is trading around 1.0279 and we expect to see the price lower in the next few sessions. In accordance with our wave rules and taking into account that wave 4 should retrace 38.2% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0221 (38.2% of wave 3). To reduce the risk, we can use resistance point at 1.0330 level as stop loss.
Support and Resistance
(S3) 1.0065 (S2) 1.0122 (S1) 1.0198 (PP) 1.0255 (R1) 1.0331 (R2) 1.0388 (R3) 1.0464
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0308 with stop loss at 1.0330 and take profit at 10221 are recommended.
