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Market Overview
On Friday during the European session the AUD/USD pair was trading in a upward trend and reached the resistance level 0.9880 (50 EMA). During the New York session the AUD/USD pair continued the movement within the bearish mood. The AUD/USD pair finished Friday's New York session at daily high at 1.9900 level(100 EMA). Today in the European session we could observe the bullish mood .Today the USD/CAD pair is expected to test the 0.9945 level before we can see price reaching a new low. Also it is necessary to consider the data concerning the USD ISM Non-Manufacturing PMI and Factory Orders m/m that could affect the rate of the pair.
Support and Resistance levels
(S3) 0.9829 (S2) 0.9848 (S1) 0.9859 (PP) 0.9877 (R1) 0.9896 (R2) 0.9907 (R3) 0.9925
USD/CAD Elliott Wave Analysis
The USD/CAD pair finished the wave 3 of the bigger (V) wave at level 0.9842. Presently we can observe the end of the wave 4.In accordance with our wave rules and taking into account that the wave 5 will is equal to the wave 3, we can define the potential targets with help of Fibonacci extension (0.9993-0.9842-0.9945) with first Take Profit at level 0.9849(61.8% of wave iii) and second Take Profit at 0.9823 (78.6% of wave iii). For Stop Loss we can use invalidation point at level 0.9975.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. Therefore, the short position at levels 0.9920 with Stop Loss in the point 0.9975 Take Profit 1 at 0.9849 and Take Profit 2 at level 0.9823 are recommended.
