USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has continued trading higher, that's why we slightly adjusted our primary forecast for this commodity pair. Yesterday, during the Asian and European sessions we could observe sideways movements between 1.05308 and 1.0560 levels. Therefore during the early New York session this major pair did not manage to hold this levels and price has reached a new daily high at 1.0601 level. At the moment the USD/CAD pair is trading around 1.0576 level and we are looking to see one more push higher before price finish the (y) wave (coloured green). In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0618 (61.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0560 level as stop loss.
Support and Resistance
(S3) 1.0478 (S2) 1.0504 (S1) 1.0549 (PP) 1.0575 (R1) 1.0620 (R2) 1.0646 (R3) 1.0691
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long position at level 1.0580 with stop loss at 1.0560 and take profit at 1.0618 are recommended.
