USD/CAD Elliott Wave
For the last few days we are tracking the corrective wave (A) (coloured green) as finished, and yesterday's bullish movement finally confirmed this scenario. During the Thursday's Asian and European sessions we could observe ascending movement from 1.0262 towards the 1.0324 level. Therefore, during the New York session this major currency has continued trading in bullish mood and the price has reached a new high at 1.0362 level. At the moment the USD/CAD is trading around 1.0375 and we expect to see more bullish movements before first sub-wave A (coloured blue) complete all five subwaves. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3,so we can define the potential targets with measuring wave 3 with take profit at 1.0410 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0289 level as stop loss.
Support and Resistance
(S3) 1.0203 (S2) 1.0233 (S1) 1.0289 (PP) 1.0319 (R1) 1.0375 (R2) 1.0405 (R3) 1.0461
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0336 with stop loss at 1.0289 and take profit at 1.0410 are recommended.
