USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has been trading downwards, just like we expected, corrective wave .y (coloured black) of the bigger wave b (coloured blue) has been developing. During the Wednesday’s Asian and European sessions we could observe descending movement from 1.0457 towards the 1.0434 level. Therefore, during the New York session this commodity pair has continued trading in a bearish mood and price has dropped to the new low at 1.0410 level. At the moment the USDCAD pair is trading around 1.0413 level and we are expecting to see one more push lower before price turn higher in the c wave (coloured blue). At the moment we see the USDCAD pair at 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 1.0435 level as stop loss.
Support and Resistance
(S3) 1.0353 (S2) 1.0382 (S1) 1.0400 (PP) 1.0429 (R1) 1.0447 (R2) 1.0476 (R3) 1.0494
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 1.0420 with stop loss at 1.0435 and take profit at 1.0382 are recommended.
