USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading upwards, just like we expected, impulsive wave .1 (coloured green) of the bigger wave A (coloured blue) has been developing. Yesterday, during the Asian session we could observe descending movement from 1.0290 towards the 1.0257 level. Therefore, during the European and New York sessions this commodity currency did not manage to hold this level and the price has reached a new 3-day high at 1.0310 level. At the moment the USD/CAD pair is trading around 1,0315 level and we expect to see small pullback before price continues to push higher, but our med-term target (1.4070) stays unchanged for now. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1,so we can define the potential targets with measuring wave 1 with take profit at 1.0388 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0250 level as stop loss.
Support and Resistance
(S3) 1.0218 (S2) 1.0237 (S1) 1.0271 (PP) 1.0290 (R1) 1.0324 (R2) 1.0343 (R3) 1.0377
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0280 with stop loss at 1.0250 and take profit at 1.0388 are recommended.
