USD/CAD Elliott Wave
Since our last analyses, the USD/CAD pair has continued trading upwards, impulsive wave .iii (coloured black) of the bigger wave c (coloured blue) has been developing.During the early Asian session we could observe descending movement from 1.0627 towards the 1.0612 level. Therfore, during the European and New York session this commodity pair did not manage to stay around the lows and price has retraced back to 1.0652 level. We can consider this move as the end of the .iii wave (coloured black). At the moment, the USD/CAD pair is trading around 1.0639 level and we expect to see just new marginal highs before price start final C wave (coloured red). 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 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) 1.0578 (S2) 1.0595 (S1) 1.0618 (PP) 1.0635 (R1) 1.0658 (R2) 1.0675 (R3) 1.0698
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 1.0550 with stop loss at 1.0700 and take profit at 1.0123 are recommended.
