USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, the corrective wave C (coloured blue) of the bigger (B) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.03469 towards 1.0390 level. Therefore, during the early New York session this commodity currency did not manage to hold this levels and the price has dropped to 1.0363 level. At the moment the USD/CAD pair is trading around 1.0420 area and we are expecting to see one more push higher before the price turns around when the final wave C (coloured blue) ends developing. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define potential targets with measuring wave A with take profit at 1.0508 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0390 level as stop loss.
Support and Resistance
(S3) 1.0306 (S2) 1.0326 (S1) 1.0349 (PP) 1.0369 (R1) 1.0392 (R2) 1.0412 (R3) 1.0435
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long positions at the level of 1.0430 with stop loss at 1.0390 and take profit at 1.0508 are recommended.
