USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading upwards, impulsive wave i (coloured blue) of the bigger wave (c) (coloured red) has been developing. In the hourly chart above, we can observe that the upward move from 1.0580 (Monday's low) towards 1.0650 was diagonal structure and we can consider this move as the leading diagonal in the wave i (coloured blue). Today this commodity pair is trading lower and when corrective wave ii (coloured blue) ends we are going to see more upward movements in the wave iii (coloured blue). 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 1.0730 (161.8% of wave 1).To protect long positions we can use invalidation level at the 1.0580 level.
Support and Resistance
(S3) 1.0590 (S2) 1.0603 (S1) 1.0624 (PP) 1.0637 (R1) 1.0658 (R2) 1.0671 (R3) 1.0692
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 1.0600 with stop loss at 1.0580 and take profit at 1.0730 are recommended.
