USD/CAD Elliott Wave
Since our last forecast, the USD/CAD pair has been trading upwards, just like we expected, corrective wave c (coloured blue) of the bigger wave (a) (coloured red) has been developing. In the 1-hour chart you can see that wave c has already extended to minimum 100% of the wave a, so we can already label wave (a) (coloured red) as completed cycle at the 1.0698 level and we can look for a fresh buying signals at (b) wave pullback. 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 1.0879 (123.6% of wave W). To protect our long positions, we can place our stops at the 1.0587 level - short term invalidation point.
Support and Resistance
(S3) 1.0542 (S2) 1.0575 (S1) 1.0614 (PP) 1.0647 (R1) 1.0686 (R2) 1.0719 (R3) 1.0758
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 1.0640 with stop loss at 1.0587 and take profit at 1.0879 are recommended.
