USD/CAD Elliott Wave
For the last couple of days, the USD/CAD pair has been trading downwards, corrective wave (ii) (coloured green) of the bigger wave [c] (coloured black) has been developing. In the 1-hour chart above, we can see that price is doing a Zig-Zag correction from the 1.1153 level high, if this is a correct count, we should see one more push lower towards the 1.1029 level - 61.8% retracements of the (i) wave, before we see higher movements again in the (iii) wave. Our focus for this week is going to be on the upside, but remember that price needs to stay above the 1.0955 level all the time, so we can use it as our stop loss 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 1.1348 (161.8% of wave (i)).
Support and Resistance
(S3) 1.1025, (S2) 1.1044, (S1) 1.1071, (PP) 1.1090, (R1) 1.1117, (R2) 1.1136, (R3) 1.1163.
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 1.1029 with stop loss at 1.0955 and take profit at 1.1348 are recommended.
