USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading downwards, just like we expected, impulsive wave 5 (coloured blue) of the bigger wave (A) (coloured green) has been developing. During the Monday's Asian and European sessions we could observe descending movement from 1.0362 towards the 1.0331 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 1.0321 level. At the moment the USD/CAD pair has been trading around 1.03284 and we expect to see one more push lower before price turn around when development of the wave 5 ends. 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 1.0362 level as stop loss.
Support and Resistance
(S3) 1.0265 (S2) 1.0292 (S1) 1.0313 (PP) 1.0340 (R1) 1.0361 (R2) 1.0388 (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 1.0320 with stop loss at 1.0362 and take profit at 1.0280 are recommended.
