USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading downwards, since our invalidation is reached we have moved our wave count to alternate scenario. In the 1-hour chart of the USD/CAD pair, we can see that we are tracking descending movement from the 1.1222 level as the double three correction inside the (X) wave (coloured red). In the short term, we have one more push lower and that's why we are going to look for a selling opportunity against the 1.1025 level. In accordance with our wave rules and taking into account that wave Y should extend 100% of wave W, we can define the potential targets with measuring wave W with take profit at 1.0831 (100% of wave A). Swing traders should wait for the (X) wave to complete, and from there we can look for a long opportunity in the last (Z) wave that can move us above the 1.1300 level.
Support and Resistance
(S3) 1.0873, (S2) 1.0913, (S1) 1.0945, (PP) 1.0985, (R1) 1.1017, (R2) 1.1057, (R3) 1.1089.
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 1.0975 with stop loss at 1.1025 and take profit at 1.0831 are recommended.
