USD/CAD Elliott Wave
The whole week, the USDCAD pair has been trading upwards, five impulsive waves in the corrective wave A (coloured blue) has been developing. During the Wednesday's Asian and European sessions, we could observe descending movements from 1.0470 towards the 1.0438 level. Therefore, during the early New York session this commodity pair did not manage to hold the bearish mood and the price retraced back to the 1.0495 level. At the moment, the USDCAD pair has been trading around the 1.0483 level, and we should see the price lowering from 1.0505 (potential end of the A wave).In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define potential targets with measuring wave A with take profit at 1.0387 (50% of wave A). To reduce the risk, we can use invalidation point at the 1.0550 level as stop loss.
Support and Resistance
(S3) 1.0391, (S2) 1.0415, (S1) 1.0447, (PP) 1.0471, (R1) 1.0503, (R2) 1.0527, (R3) 1.0559.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.0505 with stop loss at 1.0550 and take profit at 1.0387 are recommended.
