USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading upwards, impulsive wave i (coloured green) of the bigger wave 5 (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe strong ascending movement from 1.0423 towards the 1.0503 level. Therefore, during the New York session this commodity currency did not manage to hold this level and price has retraced back to 1.0467 level. At the moment the USD/CAD pair is trading around 1.0483 level and we expect to see the price higher for the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0582 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0430 level as stop loss.
Support and Resistance
(S3) 1.0352 (S2) 1.0387 (S1) 1.0432 (PP) 1.0467 (R1) 1.0512 (R2) 1.0547 (R3) 1.0592
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0490 with stop loss at 1.0430 and take at 1.0582 are recommended.
