USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading sideways, corrective wave .3 (coloured green) of the final wave 5 (coloured blue) has been developing. During the Monday's Asian and European session we could observe descending movement from 1.0584 towards the 1.0545 level. Therfore, during the early New York session this major currency did not manage to hold around the low and price has retraced to 1.0575 area. At the moment, the USD/CAD pair is trading around 1.0536 and we are expecting to see 3 more waves higher, before we can say that impulsive wave 5 (coloured blue) is over.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 1.0662 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0467 level as stop loss.
Support and Resistance
(S3) 1.0520 (S2) 1.0524 (S1) 1.0530 (PP) 1.0534 (R1) 1.0540 (R2) 1.0544 (R3) 1.0550
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0550 with stop loss at 1.0467 and take profit at 1.0662 are recommended.
