USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading downwards, corrective wave C (coloured green) of the bigger wave (4) (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe an ascending movement from 10.177 towards the 1.0249 level and we can consider this move as the end of the corrective wave (4) (coloured red). Therefore, during the New York session, this commodity currency did not manage to hold this levels and the price has retraced back to 1.0177 level. At the moment, the USD/CAD is developing final wave (5) (coloured red) and we are expecting to see continuation of the bearish movement today. In accordance with our wave rules and taking into account that wave 5 should retrace 50% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0149 (50% of wave 3). To reduce the risk, we can use invalidation point at 1.0266 level as stop loss
Support and Resistance
(S3) 1.0081 (S2) 1.0128 (S1) 1.0158 (PP) 1.0205 (R1) 1.0235 (R2) 1.0282 (R3) 1.0312
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0180 with stop loss at 1.0266 and take profit at 1.0149 are recommended.
