USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has been trading downwards, just like we expected, impulsive wave .5 (coloured green) of the bigger wave 1 (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe a descending movement from 1.0400 towards the 1.0359 level. Therefore, during the New York session this major currency pair did not manage to hold this levels and the price retraced back to 1.03766. At the moment, the USDCAD pair is trading around 1.0375 and we are expecting to see the price higher for the next few days. In accordance with our wave rules and taking into account that wave 2 should retrace 61.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0480 (61.8% of wave 1). To reduce the risk, we can use invalidation point at the 1.0365 level as stop loss.
Support and Resistance
(S3) 1.0291 (S2) 1.0325 (S1) 1.0350 (PP) 1.0384 (R1) 1.0482 (R2) 1.0443 (R3) 1.0468
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin an upward movement. That is why long positions at the level of 1.0380 with stop loss at 1.0365 and take profit at 1.0480 are recommended.
