USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has been trading upwards, corrective wave .c (coloured black) of the wave [y] (coloured green) has been developing. According to our last forecast, we expected this commodity currency to break below the lower trend line before opening the short position, but if the price breaks the last high at the 1.1198 level, we should go with an idea that wave [y] (coloured green) still has room to go higher and this can provide a short-term buying opportunity against the low at the 1.1478 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 by measuring wave [w] with take profit at 1.1289 (123.6% of wave Y).
Support and Resistance
(S3) 1.1092, (S2) 1.1121, (S1) 1.1140, (PP) 1.1169, (R1) 1.1188, (R2) 1.1217, (R3) 1.1236.
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 1.1200 with stop loss at 1.147 and take profit at 1.1289 are recommended.
