USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has been trading upwards, just like we expected, corrective wave C (coloured blue) of the bigger wave (B) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movements from 1.0478 towards the 1.0515 level. Therefore, during the early New York session this commodity pair continued trading in a bullish mood and the price reached a 1.0504 level. At the moment, the USDCAD pair is trading around 1.0522 and we are expecting to see one more push higher before the price turns around. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, so we can define potential targets with measuring wave 4 with take profit at 1.0589 (123.6% of wave 4). To reduce the risk, we can use invalidation point at 1.0500 level as stop loss.
Support and Resistance
(S3) 1.0436 (S2) 1.0457 (S1) 1.0497 (PP) 1.0518 (R1) 1.0558 (R2) 1.0579 (R3) 1.0619
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long position at the level of 1.0530 with stop loss at 1.0500 and take profit at 1.0589 are recommended.
