USD/CAD Elliott Wave
For the last few days, the USDCAD pair has been trading upwards, corrective wave .x (coloured black) of the bigger wave b (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe ascending movements from 1.0415 towards the 1.0450 level. Therefore, during the New York session the bullish mood has continued in this pair, and the price has reached a new daily high at the 1.0460 level. We can consider this move as the end of the wave .x (coloured black). At the moment, we see the USDCAD pair at the 1.0445 level, and we should see more bearish movements in the next few sessions. 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 1.0382 (50% of wave A). To reduce the risk, we can use invalidation point at 1 .0460 level as stop loss.
Support and Resistance
(S3) 1.0381 (S2) 1.0398 (S1) 1.0426 (PP) 1.0443 (R1) 1.0471 (R2) 1.0488 (R3) 1.0516
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 1.0410 with stop loss at 1.0460 and take profit at 1.0382 are recommended.
