USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, ending the diagonal inside the (c) wave (coloured black) has been developing. Yesterday, during the Asian and European session we could observe ascending movements from 1.0637 towards the 1.0677 level. Therefore, during the early New York session this commodity currency has continued trading in a bullish mood and the price has reached a new high at 1.0707 level (end of the iii wave of the .v wave Ending Diagonal). At the moment, the USD/CAD pair is trading around 1.0668 level and we are expecting to see one more push higher before the price turns around in the c wave (coloured red). In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets with measuring wave 4 with take profit at 1.0736 (161.8% of wave 4). To reduce the risk, we can use invalidation point at 1.0637 level as the stop loss.
Support and Resistance
(S3) 1.0575 (S2) 1.0606 (S1) 1.0644 (PP) 1.0675 (R1) 1.0713 (R2) 1.0744 (R3) 1.0782
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upwards movements. That is why long position at level 1.0675 with stop loss at 1.0637 and take profit at 1.0736 are recommended.
