USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has continued trading downwards, impulsive wave 3 (coloured black) of the bigger wave .1 (coloured green) has finished developing. During the Wednesday's Asian and European sessions we could observe descending movement from 1.0541 towards the 1.0509 level. Therefore, during the New York session this currency pair continued trading in the bearish mood and the price reached a new low at the 1.0474 level. We can consider this move as the end of the 3 wave (coloured black). At the moment, the USDCAD pair is trading around 1.0490 and we are expecting to see one more swing lower before we see the end of the .1 wave. In accordance with our wave rules and taking into account that wave 6 should retrace 61.8% of wave 3, so we can define the potential targets with measuring wave 3 with take profit at 1.0459 (61.8% of wave 3). To reduce the risk, we can use invalidation point at the 1.0530 level as stop loss.
Support and Resistance
(S3) 1.0399 (S2) 1.0436 (S1) 1.0466 (PP) 1.0503 (R1) 1.0533 (R2) 1.0570 (R3) 1.0600
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movement. That is why short position at the level of 1.0500 with stop loss at 1.0530 and take profit at 1.0459 are recommended.
