USD/CAD Elliott Wave
Last week, the USD/CAD pair has been trading downwards, just like we expected. The pullback from the 1.1222 level is over, and we are going to look for fresh buying signals this week. In the 1-hour chart, we can see that descending movements from the top have seven swings, that is the early warring that the wave [x] (coloured green) can be over at 1.0965. We are going to wait for a break above the trend line (1.2222 threw 1.1121) that will confirm end of the [x] wave and for invalidation we can use the Friday's low. In accordance with our wave rules and taking into account that wave [z] should extend 100% of wave [w], we can define the potential targets with measuring wave [w] with take profit at 1.1490 (100% of wave [w]).
Alternate count: Break below 1.0965 will tell us that the wave [x] (coloured green) is still not complete cycle, if this happen next supports and potential buying area is going to be 1.0911 - 50% of the [y] wave.
Support and Resistance
(S3) 1.1009, (S2) 1.1036, (S1) 1.1053, (PP) 1.1080, (R1) 1.1107, (R2) 1.1124, (R3) 1.1151.
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 1.0270 with stop loss at 1.0965 and take profit at 1.1495 are recommended.
