USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading upwards, just like we expected, impulsive wave .3 (coloured green) of the bigger wave 5 (coloured blue) has been developing. During the Monday's Asian and European sessions we could observe ascending movements from 1.0379 towards the 1.0433 level.Therefore, during the New York session this currency has continued the bullish mood and the price has reached a new high at 1.0441 level. At the moment the USD/CAD pair is trading around 1.4335 and we are expecting to see price higher in 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 1.0539 (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) 1.0340 (S2) 1.0359 (S1) 1.0393 (PP) 1.0412 (R1) 1.0446 (R2) 1.0465 (R3) 1.0499
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0440 with stop loss at 1.0360 and take profit at 1.0539 are recommended.
