USD/CAD Elliott Wave
Last week, the USD/CAD pair has been trading upwards, corrective wave (c) (coloured red) of the bigger wave [y] (coloured green) has been developing. In the 1-hour chart of this commodity pair, we can see that price has found the resistance at 1.1172 and after that we can see the corrective move lower, this correction looks like the FLAT pattern inside the wave iv (coloured red), so we should focus to potential long opportunity against the 1.0950 level next (short term invalidation). In accordance with our wave rules and taking into account that wave 5 should retrace 161.8% of wave 4, we can define the potential targets by measuring wave 4 with take profit at 1.1257 (161.8% of wave 4).
Support and Resistance
(S3) 1.0812, (S2) 1.0888, (S1) 1.0984, (PP) 1.1060, (R1) 1.1156, (R2) 1.1232, (R3) 1.1328.
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 1.1060 with stop loss at 1.0950 and take profit at 1.1257 are recommended.
