USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading slightly lower, corrective sub-wave .c (coloured green) of the bigger wave 4 (coloured blue) has been developing. Yesterday, during the Asian and European session we could observe descending movement from 1.0652 towards the 1.0513 level. Therefore, during the New York session this commodity currency did not manage to hold this levels and the price has retraced back to 1.0540 area. At the moment, the USD/CAD pair is trading around 1.0514 and we are expecting to see the price higher for the end of the .d wave of the running triangle 4. In accordance with our wave rules and taking into account that wave D should retrace 61.8% of wave B, we can define the potential targets with measuring wave B with take profit at 1.0598 (61.8% of wave B). To reduce the risk, we can use invalidation point at 1.0416 level as stop loss.
Support and Resistance
(S3) 1.0442 (S2) 1.0478 (S1) 1.0502 (PP) 1.0538 (R1) 1.0562 (R2) 1.0598 (R3) 1.0622
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0560 with stop loss at 1.0416 and take profit at 1.0598 are recommended.
