USD/CAD Elliott Wave
Last week the USD/CAD pair was trading in a triangle consolidation pattern and we can consider this move as possible corrective wave 4 (coloured blue). During Friday's Asian and European sessions we could observe ascending movement from 1.0360 towards the 1/0392 level and we can consider this move as the end of the final sub-wave .e (coloured green) of the 4 wave (coloured blue). Therefore, during the New York session this commodity currency did not manage to hold these levels and the price has retraced back to 1.0354 level. At the moment the USD/CAD pair is trading around Friday's low and we expect to see the price lower for the next few days. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0280 (61.8% of wave 3). To reduce the risk, we can use resistance point at 1.0400 level as stop loss.
Support and Resistance
(S3) 1.0333 (S2) 1.0348 (S1) 1.0356 (PP) 1.0371 (R1) 1.0386 (R2) 1.0394 (R3) 1.0409
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0340 with stop loss at 1.0400 and take profit at 1.0280 are recommended.
