USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading in a choppy downwards move, we can consider this move as possible wedge formation in the wave 5 (coloured blue) of the (A) (coloured green). During the Monday's Asian and European sessions we could observe descending movement from 1.0282 towards the 1.0250 level and we can consider this move as the end of the corrective wave (A). Therefore, during the New York session this commodity currency did not manage to hold around the lows and the price has retraced back to 1.0267 level. At the moment the USD/CAD pair is trading around 1.02810 and we expect to see the continuation of the bullish move for the next few sessions. In accordance with our wave rules and taking into account that wave B should retrace 61.8% of wave A,so we can define the potential targets with measuring wave A with take profit at 1.0470 (61.8% of wave A). To reduce the risk, we can use invalidation point at 1.0250 level as stop loss.
Support and Resistance
(S3) 1.0219 (S2) 1.0235 (S1) 1.0251 (PP) 1.0267 (R1) 1.0283 (R2) 1.0299 (R3) 1.0315
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0310 with stop loss at 1.0250 and take profit at 1.0470 are recommended.
