USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading slightly higher, corrective wave b/ii has been developing. Yesterday, during the Asian and European sessions we could observe an ascending movement from 1.0520 towards 1.0557 level and we can consider this move as the end of the b/ii wave. Therefore, during the New York session, this commodity pair did not manage to hold this level and the price has retraced back to 1.0527 level. At the moment, the USD/CAD pair is trading around 1.0555 and we are going to see new lows in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 3 with take profit at 1.0462 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0580 level as stop loss.
Support and Resistance
(S3) 1.0455 (S2) 1.0489 (S1) 1.0515 (PP) 1.0549 (R1) 1.0575 (R2) 1.0609 (R3) 1.0635
Trading forecast
Proceeding from the Elliott Wave rules today, the trend is expected to begin the downward movements. That is why short position at level 1.0560 with stop loss at 1.0580 and take profit at 1.0462 are recommended.
