USD/CAD Elliott Wave
Last week, the USD/CAD pair was trading upwards, impulsive wave .v (coloured black) of the bigger wave c (coloured blue) was developing. During Friday's Asian and European sessions, we could observe ascending movements from 1.0514 towards the 1.0567 level. Therefore, during the New York session, this commodity pair did not manage to hold this resistance level and the price dropped to the 1.0508 level. At the moment, the USD/CAD pair is trading around 1.0580 and we are expecting to see the price lower any time soon. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define potential targets with measuring wave A with take profit at 1.0152 (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) 1.0446, (S2) 1.0480, (S1) 1.0499, (PP) 1.0533, (R1) 1.0552, (R2) 1.0586, (R3) 1.0605.
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 1.0500 with stop loss at 1.0600 and take profit at 1.0152 are recommended.
