USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading lower, so we have changed our primary wave count a little bit. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0439 towards the 1.0362 level and we can consider this move as the end of the corrective b wave (coloured green) of the bigger b wave (coloured blue). Therefore, during the New York session this commodity currency did not manage to hold this levels and the price has retraced back to 1.0392 level. At the moment the USD/CAD pair is trading around 1.0396 and we expect to see the continuation of the bullish movement for 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 1.0443 (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) 1.0263 (S2) 1.0313 (S1) 1.0341 (PP) 1.0391 (R1) 1.0419 (R2) 1.0469 (R3) 1.0497
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 1.0360 and take profit at 1.0443 are recommended.
