USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading sideways, Triangle iv wave (coloured purple) of the bigger wave .v (coloured black) has been developing. Yesterday, during the Asian and European session we could observe small descending movement from 1.0594 towards the 1.0569 level. Therefore, during the early New York session this commodity pair did not manage to hold around the lows and price has reached a new sessions high at 1.0596 level. At the moment the USD/CAD pair is trading around 1.0592 and we are going to see more upwards movements today before the price turns around after the wave 5 (coloured blue) of the bigger wave (y) ends the correction. 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 3). To reduce the risk, we can use invalidation point at 1.0560 level as stop loss.
Support and Resistance
(S3) 1.0541 (S2) 1.0555 (S1) 1.0568 (PP) 1.0582 (R1) 1.0595 (R2) 1.0609 (R3) 1.0622
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 1.0580 with stop loss at 1.0560 and take profit at 1.0618 are recommended.
