USD/CAD Elliott Wave
For the last couple of days, the USD/CAD pair has been trading side-ways, corrective wave (c) (coloured blue) of the bigger wave [a] (coloured green) has been developing. In the 1-hour chart above, we can observe that strong upwards move from the start of last week has finally found resistance at the 1.0325 level, and from there this currency pair has lost momentum and we got ranging between 1.1030-1.0995 zone. We are going with idea of potential ending diagonal pattern forming in the (c) wave, and if this is a true we should see more upside movements with a break above the 1.0325 level. 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 1.0831 (100% of wave A).
Alternate Count: With a resistance at 1.0325 we have just ended first (a) leg, and if this is true, we should see 1.09300 before price turn higher in the (c) wave again. In any case we should only be interested in a buying opportunity against 1.0900 level.
Support and Resistance
(S3) 1.0980, (S2) 1.0993, (S1) 1.1003, (PP) 1.1016, (R1) 1.1026, (R2) 1.1039, (R3) 1.1049.
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 1.1325 with stop loss at 1.0900 and take profit at 1.01080 are recommended.
