USD/CAD Elliott Wave
This week the USD/CAD pair has been trading in a sideways move, we can consider this move as a triangle pattern of the corrective wave 4 (coloured blue). Yesterday, during the Asian and European sessions we could observe descending movement from 1.0438 towards the 1.0389 level. Therefore, during the New York session this commodity currency has continued trading in a bearish mood and the price has reached a new low at 1.0359 level. We can consider this move as the end of the wave d (coloured red) of the 4 wave. At the moment the USD/CAD pair is trading around 1.0374 and we are expecting to see one more push higher for the end of the final wave e (coloured red). In accordance with our wave rules and taking into account that wave E should retrace 61.8% of wave C, we can define the potential targets with measuring wave C with take profit at 1.0412 (61.8% of wave C). To reduce the risk, we can use support point at 1.0365 level as stop loss.
Support and Resistance
(S3) 1.0289 (S2) 1.0332 (S1) 1.0353 (PP) 1.0396 (R1) 1.0417 (R2) 1.0460 (R3) 1.0481
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0385 with stop loss at 1.0365 and take profit at 1.0412 are recommended.
