USD/CAD Elliott Wave
For the last few days the USDCAD pair has been trading aggressively higher, corrective wave a (coloured blue) of the bigger wave [b] (coloured black) has been developing. Yesterday, during the Asian session we could observe descending movement from 1.0381 towards the 1.0363 level. Therefore, during the European and New York sessions this major pair did not manage to hold this levels and the price has started pushing higher in the last swing of the .iii wave (coloured black), and we could see a test of the 1.0436 level. At the moment, the USCAD pair is trading around the 1.0427 level and we are expecting to see one more push higher, before the price turns lower in the b wave (coloured blue).In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 1.0454 (161.8% of wave 4). To reduce the risk, we can use support point at the 1.0407 level as stop loss.
Support and Resistance
(S3) 1.0304 (S2) 1.0335 (S1) 1.0376 (PP) 1.0407 (R1) 1.0448 (R2) 1.0479 (R3) 1.0520
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 1.0430 with stop loss at 1.0407 and take profit at 1.0454 are recommended.
