USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading upwards, impulsive wave 5 (coloured blue) of the bigger wave [5] (coloured red) has been developing. During the Friday's, Asian and European sessions we could observe ascending movement from 1.0322 towards the 1.0443 level and we can consider this move as the end of the wave 1 (coloured green). Therefore, during the New York session when development of the corrective wave 2 started this major currency did not manage to stay in a bullish mood and the price retraced back to 1.0357 level. At the moment the USD/CAD pair is trading around 1.04167 and we expect to see the price higher in the next few trading 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 1.0539 (161.8% of wave 1). To reduce the risk, we can use support point at 1.0360 level as stop loss.
Support and Resistance
(S3) 1.0322 (S2) 1.0339 (S1) 1.0368 (PP) 1.0385 (R1) 1.0414 (R2) 1.0431 (R3) 1.0460
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0450 with stop loss at 1.0360 and take profit at 1.0539 are recommended.
