USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, impulsive wave 3 (coloured blue) of the bigger wave [1] (coloured red) has been developing. During the Wednesday's Asian and European sessions we could observe descending movement from 1.0239 towards the 1.0175 level and we can consider this move as the end of the corrective sub-wave 2 of the wave 3 (coloured blue). Therefore, during the late New York session this major currency did not manage to hold this levels and the price has retraced all the way to 1.0284 level. At the moment the USD/CAD pair is trading around 1.0310 area and we expect to see the continuation of the bullish mood for the couple of days. In accordance with our wave rules and taking into account that wave 3 should retrace 461.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0363 (461.8% of wave 1). To reduce the risk, we can use support point at 1.0240 level as stop loss.
Support and Resistance
(S3) 1.0087 (S2) 1.0130 (S1) 1.0200 (PP) 1.0243 (R1) 1.0313 (R2) 1.0356 (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 1.0330 with stop loss at 1.0240 and take profit at 1.0363 are recommended.
