USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading downwards and that is why we changed the way we view corrective wave 4 from triangle to the flat correction. Yesterday during the Asian and European session we could observe descending movement from 1.0526 towards the 1.0446 level. Therefore, during the New York session this commodity currency has continued trading in a bearish mood and price has reached a new low at 1.0380. At the moment the USD/CAD pair is trading around 1.0382 area and we are expecting to see price higher when developing of the final wave 5 (coloured blue) starts. In accordance with our wave rules and taking into account that wave 5 should retrace 76.4% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0637 (76.4% of wave 3). To reduce the risk, we can use invalidation point at 1.0200 level as stop loss.
Support and Resistance
(S3) 1.0335 (S2) 1.0391 (S1) 1.0428 (PP) 1.0484 (R1) 1.0521 (R2) 1.0577 (R3) 1.0614
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0400 with stop loss at 1.0200 and take profit at 1.0637 are recommended.
