USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has continued trading lower, impulsive wave .iii (coloured black) of the bigger wave i (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe an ascending movement from 1.0637 towards the 1.0668 level, and we can call this move as the end of the second swing inside the .iii wave. Therefore, during the early New York session, this commodity pair did not manage to hold this levels and the price retraced back to the 1.0623 level. At the moment, the USD/CAD pair is trading around 1.06237, and we are expecting to see more bearish movements in the next few days. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0537 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0699 as stop loss.
Support and Resistance
(S3) 1.0569 (S2) 1.0597 (S1) 1.0612 (PP) 1.0640 (R1) 1.0655 (R2) 1.0683 (R3) 1.0698
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.0650 with stop loss at 1.0699 and take profit at 1.0537 are recommended.
