USD/CAD Elliott Wave
Since our last analyses, the USDCAD pair has been trading upwards, just like we expected, corrective wave (.c) (coloured black) of the bigger wave .v (coloured black) has been developing. Yesterday, during the Asian session, we could observe ascending movements from 1.0451 towards the 1.0473 level. Therefore, during the European and New York sessions this commodity currency did not manage to hold this level and the price retraced back to the 1.0434 level. We can consider this move as the end of the (.b) wave (coloured black) of the bigger .v wave (coloured black). At the moment, the USD/CAD pair is trading around the 1.0473 level, and we should see more upward movements in the next couple of 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 the 1.0435 level as stop loss.
Support and Resistance
(S3) 1.0392 (S2) 1.0413 (S1) 1.0430 (PP) 1.0451 (R1) 1.0468 (R2) 1.0489 (R3) 1.0506
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0480 with stop loss at 1.0435 and take profit at 1.0550 are recommended.
