USD/CAD Elliott Wave
Last week, the USD/CAD pair has been trading downwards, just like we expected, corrective wave x (colured blue) of the bigger wave (y) (coloured red) has been developing. On the 1H chart above you can see that we have completed FLAT pattern on Tuesday at the 1.0615 level and from there this commodity pair has been trading slightly higher around the 1.0659 level. We are going to look for three more upward movements to complete the final wave y (blue) and that is why we are going to look for buying opportunity against the end of wave x at the 1.0615 level. In accordance with our wave rules and taking into account that wave Y should retrace 123.6% of wave W, we can define the potential targets with measuring wave W with take profit at 1.0762 (100% of wave W).
Support and Resistance
(S3) 1.0566 (S2) 1.0591 (S1) 1.0606 (PP) 1.0631 (R1) 1.0646 (R2) 1.0671 (R3) 1.0686
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 1.0670 with stop loss at 1.015 and take profit at 1.0762 are recommended.
