USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has been trading upwards, just like we expected, we can say that the bullish move from 1.0275 is complex correction in the 2 wave (coloured blue). Yesterday, during Asian and European sessions we could observe an ascending movement from 1.0301 towards 1.0336. Therefore, during the New York session, this commodity currency continued trading in a bullish mood and the price reached a new high at 1.0347 level. At the moment, the price is trading lower and we are expecting to see continuation of the bearish movement when developing of the wave 3 starts. 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 1.0197 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0450 level as stop loss.
Support and Resistance
(S3) 1.0265 (S2) 1.0282 (S1) 1.0313 (PP) 1.0330 (R1) 1.0361 (R2) 1.0378 (R3) 1.0409
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short position at level 1.0320 with stop loss at 1.0450 and take profit at 1.0197 are recommended.
