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Market Overview
Yesterday the USD/CAD pair was trading within the upward movement. During the European session the major started the ascending movement to the 0.9959 level. Therefore during the New York session the USD/CAD pair pushed only 35 pips lower before the price had started the new bullish mood.The USD/CAD pair finished Monday's New York session at 0.9945 level.Today during the Asian session we could observe the continuation of the upward movement.Today the USD/CAD pair is expected to test the 0.9970 level before reaching a new low, but it is also necessary to consider the data on the Canadian Ivey PMI as it can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9855 (S2) 0.9883 (S1) 0.9901 (PP) 0.9929 (R1) 0.9957 (R2) 0.9975 (R3) 1.0003
USD/CAD Elliott Wave Analysis
The USD/CAD pair finished corrective a wave of the bigger wave 4 coming from 0.9959 and wave B developing from 0.9933. Presently we can see, that the final wave C is completed. Thus, we can open short positions for the wave 5. 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 (0.9993-0.9842-0.9972) with first Take Profit at level 0.9877(61.8% of wave iii) and second Take Profit at 0.9852 (78.6% of wave 3). 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. That is why Short position at levels 0.9950 with Stop Loss at 0.9975, Take Profit 1 at 0.9877 and Take Profit 2 at 0.9852 are recommended.
