USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading downwards, corrective wave [x] (coloured green) of the bigger wave B (coloured black) has been developing. In the 1-hour chart of the USD/CAD pair we can observe that (b) of [x] that is developing from the 1.1040 level should be over at 1.1122 as either FLAT or TRIANGLE pattern. Traders who are short should remain in their selling positions and everyone else can try selling this pair against the 1.1122 level that is our short-term invalidation point. In accordance with our wave rules and taking into account that wave [x] should retrace 50% of wave [y], we can define the potential targets with measuring wave [y] with take profit at 1.0900 (50% of wave Y).
Support and Resistance
(S3) 1.0969, (S2) 1.1009, (S1) 1.1040, (PP) 1.1080, (R1) 1.1111, (R2) 1.1151, (R3) 1.1182.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.1065 with stop loss at 1.1122 d take profit at 1.0900 are recommended.
