USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading downwards, impulsive wave 1 (coloured blue) of the bigger wave (C) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0420 towards 1.0360 that confirms that wave (B) is in place. Therefore, during the New York session this commodity currency has continued trading in a bearish mood and the price has reached a new low at 1.0300 level. At the moment, the price is trading slightly around 1.0310 area and we are expecting to see one more bearish move before the price turns higher when developing of the 2 wave starts. 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 1.0263 (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) 1.0149 (S2) 1.0226 (S1) 1.0276 (PP) 1.0353 (R1) 1.0403 (R2) 1.0480 (R3) 1.0530
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why short positions at the level of 1.0330 with stop loss at 1.0390 and take profit at 1.0263 are recommended.
