USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading slightly upwards, corrective wave (c) (coloured red) of the bigger wave (y) (coloured green) has been developing. In the hourly chart above, we can observe that the downward move from 1.0736 towards 1.0580 was corrective and we can consider this move as the end of the wave (b). In the (c) wave that is developing from 1.0580 we do not see enough swings to call the cycle completed and that is why we are going to look for more upward movements in this commodity pair and favor buying against the Monday's low in the next few days. In accordance with our wave rules and taking into account that wave C should retrace 123.6% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0800 (123.6% of wave A).
Support and Resistance
(S3) 1.0583 (S2) 1.0593 (S1) 1.0613 (PP) 1.0623 (R1) 1.0643 (R2) 1.0653 (R3) 1.0673
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 1.0650 with stop loss at 1.0580 and take profit at 1.0800 are recommended.
