USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has continued trading downwards, so we have adjusted our primary forecast to fit the latest market movements. On the hourly chart above, we can see that the short-term cycle from the 1.0560 level we can see a diagonal pattern and we are labeling the high at 1.0736 as a potential (a) wave (coloured red) of the bigger [y] wave (coloured green) (The sentence is hard to understand). The pullback from 1.0736 should be over soon and while the price stays above the 1.0560 level (short-term invalidation), we can look for five more upward movements in the final red (c) wave. In accordance with our wave rules and taking into account that wave C should retrace 100-123.6% of wave A, we can define the potential targets measuring wave A with take profit at 1.0758-1.0800 (100-123.6% of wave A). RSI should stay below the highs when the pair reaches the 1.0800 level and from there swing traders can look for selling setups.
Support and Resistance
(S3) 1.0505, (S2) 1.0505, (S1) 1.0576, (PP) 1.0614, (R1) 1.0647, (R2) 1.0685, (R3) 1.0718.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0630 with stop loss at 1.0560 and take profit at 1.0800 are recommended.
