USD/CAD Elliott Wave
For the last few days, the USDCAD pair has been trading downwards in an impulsive structure, we are counting the move from 1.0550 as impulsive wave 1 (coloured blue).During the Friday's Asian and European sessions we could observe descending movement from 1.0515 towards the 1.0487 level. Therefore, during the New York session this commodity currency continued trading lower and the price reached a new session low at 1.0380.We can consider this move as the end of the wave .3 (coloured green). At the moment, we are in the final wave .5 (coloured green) and we are expecting to see one more push lower before the price turns around. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define potential targets with measuring wave 3 with take profit at 1.0342 (61.8% of wave 1). To reduce the risk, we can use an invalidation point at the 1.0430 level as stop loss.
Support and Resistance
(S3) 1.0236, (S2) 1.0308, (S1) 1.0359, (PP) 1.0431, (R1) 1.0482, (R2) 1.0554, (R3) 1.0605.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin a downward movement. That is why short positions at the level of 1.0385 with stop loss at 1.0430 and take profit at 1.0342 are recommended.
