USD/CAD Elliott Wave
From the beginning of the week the USD/CAD pair has been trading downwards, impulsive wave 5 (coloured blue) of the bigger wave (A) (coloured green) has been developing. Yesterday, during the European session we could observe descending movement from 1.0312 towards the 1.0260 level, and we can consider this move as the end of the 5 wave. Therefore, during the New York session when development of the (B) wave starts, this commodity currency has pushed slightly higher and the price reached a new daily high at 1.0323 level. At the moment the USD/CAD pair is trading around 1.0304 level and we expect to see the price higher for the next few days. In accordance with our wave rules and taking into account that wave B should retrace 61.8% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0473 (61.8% of wave A). To reduce the risk, we can use invalidation point at 1.0275 level as stop loss.
Support and Resistance
(S3) 1.0213 (S2) 1.0237 (S1) 1.0275 (PP) 1.0299 (R1) 1.0337 (R2) 1.0361 (R3) 1.0399
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0330 with stop loss at 1.0275 and take profit at 1.0473 are recommended.
