USD/CAD Elliott Wave
Last week, the USDCAD pair was trading upwards, impulsive wave .3 (coloured green) of the bigger wave C (coloured blue) was developing. During the Friday's Asian and early European sessions we could observe ascending movement from 1.0532 towards the 1.0567 level, and we can consider this move as the end of the .3 wave. Therefore, during the New York session this commodity currency started to push lower and the price reached a new daily low at 1.0491 level. At the moment, the USDCAD pair is trading around 1.0506 and we are expecting to see continuation of the bigger bullish movement today. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, so we can define the potential targets with measuring wave 4 with take profit at 1.0584 (123.6% of wave 4). To reduce the risk, we can use support point at 1.0433 level as stop loss.
Support and Resistance
(S3) 1.0400 (S2) 1.0447 (S1) 1.0472 (PP) 1.0519 (R1) 1.0544 (R2) 1.0591 (R3) 1.0616
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long position at the level of 1.0470 with stop loss at 1.0433 and take profit at 1.0584 are recommended.
