USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading sideways, corrective wave .b (coloured black) of the bigger wave y (coloured blue) has been developing. Yesterday, during the Asian and European sessions, we could observe descending movements from 1.0592 towards 1.0570 level. Therefore, during the New York session this commodity currency did not manage to hold this levels and the price retraced back to 1.0594 level. At the moment, the USD/CAD pair is trading around 1.0571 and we are expecting to see one more push lower before the price turns higher again in the (5) wave.In accordance with our wave rules and taking into account that wave B should retrace 61.8% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0631 (61.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0570 level as stop loss.
Support and Resistance
(S3) 1.0557 (S2) 1.0564 (S1) 1.0579 (PP) 1.0586 (R1) 1.0601 (R2) 1.0608 (R3) 1.0623
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at 1.0590 with stop loss at 1.0570 and take profit at 1.0631 are recommended.
