USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading downwards, impulsive wave [v] (coloured red) of the bigger wave C (coloured green) has finished developing. During the Monday's Asian and European sessions we could observe sideways movement between 1.0214 and 1.0179 area, and we can consider this move as the end of the corrective wave [4] (coloured red). Therefore, during the New York session this major currency did not manage to hold this level and the price has reached a new low at 1.0166 level (end of the [5] wave). At the moment the USD/CAD pair is developing impulsive wave 3 (coloured blue) of the bigger wave [i] (coloured red) and we are expecting to see the price higher today. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0252 (61.8% of wave 3). To reduce the risk, we can use support point at 1.0200 level as stop loss.
Support and Resistance
(S3) 1.0111 (S2) 1.0139 (S1) 1.0166 (PP) 1.0194 (R1) 1.0221 (R2) 1.0249 (R3) 1.0276
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0220 with stop loss at 1.0200 and take profit at 1.0252 are recommended.
