USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has been trading downwards, just like we expected, corrective wave A (coloured blue) of the bigger wave (b) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0310 towards the 1.0282 level.Therefore, during the early New York session this commodity currency has continued trading in a bearish mood and the price reached a new low at 1.0274 level (end of A wave). At the moment the USDCAD pair is trading around 1.0280 and we are expecting to see one more push lower before the price turns higher in the (c) wave. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0245 (50% of wave A). To reduce the risk, we can use invalidation point at 1.0300 level as stop loss.
Support and Resistance
(S3) 1.0233 (S2) 1.0254 (S1) 1.0268 (PP) 1.0289 (R1) 1.0303 (R2) 1.0324 (R3) 1.0338
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short positions at level 1.0270 with stop loss at 1.0300 and take profit at 1.0245 are recommended.
