USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, impulsive wave 1 (coloured green) of the bigger wave (5) (coloured blue) has finished developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0275 towards the 1.0332 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 1.0360 level. At the moment the USD/CAD pair is finishing corrective wave 2 (coloured green) and we expect to see the price higher in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 100% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0432 (100% of wave 1). To reduce the risk, we can use invalidation point at 1.0260 level as stop loss.
Support and Resistance
(S3) 1.0267 (S2) 1.0296 (S1) 1.0320 (PP) 1.0349 (R1) 1.0373 (R2) 1.0402 (R3) 1.0426
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0335 with stop loss at 1.0260 and take profit at 1.0432 are recommended.
