USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading upwards, just like we expected, corrective wave B (coloured green) of the bigger wave (4) (coloured blue) has finished developing. During the Friday's European session we could observe descending movement from 1.3065 towards the 1.0302 level and we can consider this move as the end of the corrective sub-wave [b] (coloured red) of the B wave (coloured green). Therefore, during the New York session this commodity currency did not manage to hold this levels and the price has retraced to the daily high at 1.3080 level. We can consider this move as the end of the final sub-wave [c] (coloured red) of the B wave. At the moment the USD/CAD pair is trading around 1.3060 area and we expect to see the price lower for the next few sessions. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0249 (100% of wave A). To reduce the risk, we can use resistance point at 1.0400 level as stop loss.
Support and Resistance
(S3) 1.0261 (S2) 1.0294 (S1) 1.0314 (PP) 1.0347 (R1) 1.0380 (R2) 1.0400 (R3) 1.0433
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0350 with stop loss at 1.0400 and take profit at 1.0249 are recommended.
