USD/CAD Elliott Wave
For the last couple of days, the USD/CAD pair has been trading downwards, corrective wave [b] (coloured black) of the bigger wave W (coloured blue) has been developing. In the 1-hour chart above, we can see that our primary count, pointing for a double three correction inside the [b] wave is still valid, but since we are getting close to our invalidation level, we need to have a backup plan. Another break below the 1.0955 level will be the invalidation, and if this happen we are going to look at the bigger (X) wave as still incomplete count. In any case the USD/CAD pair should correct the cycle from the 1.1183 level in the next few sessions, and if you plan to go long according to our primary wave count, you should move the stop loss to entry level at the next push higher. In accordance with our wave rules and taking into account that wave [c] should extend 100% of wave [a], we can define the potential targets with measuring wave [a] with take profit at 1.1288 (100% of wave [a]).
Support and Resistance
(S3) 1.0853, (S2) 1.0904, (S1) 1.0944, (PP) 1.0995, (R1) 1.1035, (R2) 1.1086, (R3) 1.1126.
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 1.0980 with stop loss at 1.0910 and take profit at 1.1288 are recommended.
