USD/CAD Elliott Wave
From the start of April, the USD/CAD pair has been trading steadly upwards, corrective wave [a] (coloured green) of the bigger wave Z (coloured red) has been developing. In the 1-hour chart of the pair above, we can observe that (c) of [a] wave have finished at the 1.1053 level, and from there we are tracking the [b] wave pullback. While price remain below the 1.01053 high, our main focus will be to sell this currency pair. In accordance with our wave rules and taking into account that wave [b] should extend 50% of wave [a], we can define the potential targets with measuring wave [a] with take profit at 1.0954 (50% of wave [a]).
Alternate count: We are still inside of the Ending Diagonal (c) of [a] wave, and if we see a break above the 1.1053 level again, next resistance area will be between the 1.1110 level.
Support and Resistance
(S3) 1.0985, (S2) 1.0999, (S1) 1.1018, (PP) 1.1032, (R1) 1.1051, (R2) 1.1065, (R3) 1.1084.
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 1.1010 with stop loss at 1.1053 and take profit at 1.0954 are recommended.
