USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, just like we expected, corrective wave C (coloured blue) of the bigger wave (y) (coloured green) has been developing. Yesterday, during the Asian and European sessions, we could observe ascending movements from 1.0453 towards the 1.0490 level. Therfore, during the New York session this currency continued trading in the bullish mood and the price reached a new session high at the 1.0525 level. At the moment, the USD/CAD pair is trading around the 1.0546 level and we are expecting to see small drop in the next few sessions. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0121(100% of wave A). To reduce the risk, we can use invalidation point at the 1.0600 level as stop loss.
Support and Resistance
(S3) 1.0392, (S2) 1.0421, (S1) 1.0469, (PP) 1.0498, (R1) 1.0546, (R2) 1.0575, (R3) 1.0623.
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 1.0480 with stop loss at 1.0600 and take profit at 1.0121 are recommended.
