USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has continued trading lower, final wave [c] (coloured black) of the bigger wave Y (coloured blue) has been developing. We can see in the 1-hour chart above, that we are inside the impulsive (iii) wave (coloured green) of the bigger wave [c] (coloured black) and this can offer us good selling opportunity against the 1.1025 level (short term invalidation level). In accordance with our wave rules and taking into account that wave (iii) should extend 161.8% of wave (i), we can define the potential targets with measuring wave (i) with take profit at 1.0872 (161.8% of wave (i)). 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) 1.0900, (S2) 1.0919, (S1) 1.0950, (PP) 1.0969, (R1) 1.1000, (R2) 1.1019, (R3) 1.1050.
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 1.0960 with stop loss at 1.1025 and take profit at 1.0872 are recommended.
