USD/CAD Elliott Wave
For the last couple a days, the USD/CAD pair has been trading in a strong downward channel, since our invalidation is reached we are going to switch over to alternate count. In the 4-hours chart of the pair, we can observe that price has found resistance at the 1.1278 level, and from there we are seeing strong descending movements towards the 1.1010 level. At the moment, we must go with idea of the FLAT correction in the (X) wave (coloured red), and while price remain below the 1.1100 level, we are going to focus on more downside movements in this commodity currency.In accordance with our wave rules and taking into account that wave C should extend 123.6% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0890 (123.6% of wave A). Swing traders need to wait a new low to get reached before we try another long opportunity.
Support and Resistance
(S3) 1.0901, (S2) 1.0957, (S1) 1.0993, (PP) 1.1049, (R1) 1.1085, (R2) 1.1141, (R3) 1.1177.
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 1.1040 with stop loss at 1.1100 and take profit at 1.0890 are recommended.
