USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, impulsive wave .v (coloured black) of the bigger wave c (coloured blue) has been developing. Yesterday, during the early Asian session we could observe descending movement from 1.0436 towards the 1.0415 level. Therfore, during the European and New York session this major currency did not manage to hold this level and the price retraced back to the 1.0483 level. At the moment, the USD/CAD pair is trading around 1.0460, and we are expecting to see more upward movements in the next few sessions. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 1.0550 (123.6% of wave 4). To reduce the risk, we can use invalidation point at 1.0415 level as stop loss.
Support and Resistance
(S3) 1.0357 (S2) 1.0385 (S1) 1.0427 (PP) 1.0455 (R1) 1.0455 (R2) 1.0525 (R3) 1.0567
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at 1.0480 with stop loss at 1.0415 and take profit at 1.0550 are recommended.
