USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair has continued upwards movements, wave (iii)/(c) (coloured green) of the bigger wave [a] (coloured black) has been developing. In the 1-hour chart above, we can see that wave (ii)/(b) (coloured green) has completed short down cycle from 1.1092 at 1.1059 level. At the moment, we see that price has toping around the 1.1190 area, news coming from Canada in a few minutes can move this commodity pair quickly, so let see what is the best way to plan a trade. While the USD/CAD pair remain above the 1.0949 level, we only want to join the buyers that should come at the next pullback, next supports could easy become the 1.1050-1.1015 area (50-61.8% of the [a] wave). In accordance with our wave rules and taking into account that wave Z should extend 61.8% of wave W, we can define the potential targets with measuring wave (i) with take profit at 1.1512 (61.8% of wave W). Short term traders can try to join the short term selling opportunity against the 1.1195 high.
Support and Resistance
(S3) 1.1039, (S2) 1.1059, (S1) 1.1071, (PP) 1.1091, (R1) 1.1111, (R2) 1.1123, (R3) 1.1143.
Trading forecast
Proceeding from the Elliott Wave rules today, the trend is expected to begin upward movements. That is why, short positions at the level of 1.0150 with stop loss at 1.0949 and take profit at 1.151 are recommended.
