USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading upwards, the impulsive wave .3 (coloured green) of the bigger wave C (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0378 towards 1.0445 level and we could consider this move as the end of wave .3 (coloured green). Therefore, during the New York session this commodity currency did not manage to stay bullish and the price has dropped to 1.0400 level. At the moment, the USD/CAD pair is trading around 1.0413 area and we are expecting to see the price higher in the next few session. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define potential targets with measuring wave 3 with take profit at 1.0454 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0390 level as stop loss.
Support and Resistance
(S3) 1.0301 (S2) 1.0334 (S1) 1.0378 (PP) 1.0411 (R1) 1.0455 (R2) 1.0488 (R3) 1.0532
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 1.0420 with stop loss at 1.0390 and take profit at 1.0454 are recommended.
