USD/CAD Elliott Wave
For more than a month the USD/CAD pair has been trading upwards, corrective wave (C) (coloured black) of the bigger FLAT b wave (coloured red) has been developing. During the Friday's Asian and European session we could observe descending movement from 1.0599 towards the 1.0558 level. Therefore, during the New York session this commodity pair did not manage to hold around the lows and price has retraced back to 1.0627 level. At the moment the USD/CAD pair is trading around the Friday's high and we expect the end of the Ending Diagonal structure inside the (c) of b wave in the next few days and from there we should look for selling opportunity inside the c of (X) wave. In accordance with our wave rules and taking into account that wave X should retrace 50% of wave W, we can define the potential targets with measuring wave W with take profit at 1.0123 (50% of wave W). To reduce the risk, we can use invalidation point at 1.0700 level as stop loss.
Support and Resistance
(S3) 1.0234 (S2) 1.0316 (S1) 1.0464 (PP) 1.0546 (R1) 1.0694 (R2) 1.0776 (R3) 1.0924
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short position at level 1.0550 with stop loss at 1.0700 and take profit at 1.0123 are recommended.
