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Market Overview
On Friday the USD/CAD pair was trading within an upward movement. In the early Asian session the major started pushing higher to the 0.9985 level. The USD/CAD pair did not manage to hold this level, therefore during the European session the pair moved to the new daily low 0.9965. In the course of the New York session the pair climbed to new high 1.0000. Today we can observe the continuation of the bullish mood as the price is above the 1.0020 level. Today the pair is expected to test the resistance level 1.0030 before the beginning of the downside movement. Also it is necessary to consider the data concerning the USA Pending Home Sales m/m that could affect the rate of the pair.
Support and Resistance levels
(S3) 0.9950 (S2) 0.9964 (S1) 0.9973 (PP) 0.9987 (R1) 1.0001 (R2) 1.0010 (R3) 1.0024
USD/CAD Elliott Wave Analysis
The USD/CAD pair finished the (B) wave of the bigger (2) wave at 0.9953. Presently we can observe the end of (C) wave. According to our wave rules and taking into consideration that the wave (3) is the longest, we can define the potential targets with help of Fibonacci extension (1.0050-0.9906-1.0030) with the first take profit at level 0.9940 (61.8% of wave (1)) and the second take profit at 0.9888 (100% of wave (1)). For stop loss we can use invalidation point in our count at 1.0050
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short position at levels 1.0010 with Stop Loss at 1.0050, Take Profit 1 at 1.0750 and Take Profit 2 at 1.0630 are recommended.
IFX. Агапова
