USD/CAD Elliott Wave
Last week the USD/CAD pair has been trading upwards, impulsive wave 3 (coloured blue) of the bigger wave [1] (colured red) has been developing. During the Friday's Asian and European sessions we could observe ascending movement from 1.0362 towards the 1.0487 level. Therefore, during the New York session this major currency did not manage to hold this levels and the price has retrace back to 1.0438 level. Today the USD/CAD pair has found resistance at 1.0538 level (end of the impulsive wave 3) and the price is currently trading below 1.0520 area. In accordance with our wave rules and taking into account that wave 4 should retrace 38.2% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0397 (38.2% of wave 3). To reduce the risk, we can use resistance point at 1.0540 level as stop loss.
Support and Resistance
(S3) 1.0310 (S2) 1.0358 (S1) 1.0388 (PP) 1.0436 (R1) 1.0484 (R2) 1.0514 (R3) 1.0562
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0510 with stop loss at 1.0540 and take profit at 1.0397 are recommended.
