USD/CAD Elliott Wave
Since our last analyses, the USDCAD pair has continued trading downwards, so we need to extend the wave b (coloured blue) of the bigger wave (y) a little bit. Yesterday, during the Asian and European sessions we could observe descending movements from 1.0317 towards the 1.0274 level and we can consider this move as the end of the wave b (coloured blue).Therefore, during the New York session this commodity pair did not manage to hold this levels and the price has pushed higher to 1.0327 (new daily high). At the moment, the USDCAD pair is trading around 1.0302 and we are expecting to see one more push higher before the price turns around when developing of the [b] wave (coloured black) ends. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0355 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0273 level as stop loss.
Support and Resistance
(S3) 1.0235 (S2) 1.0254 (S1) 1.0279 (PP) 1.0298 (R1) 1.0323 (R2) 1.0342 (R3) 1.0367
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0315 with stop loss at 1.0275 and take profit at 1.0355 are recommended.
