_source!.png)
Market Overview
On Friday during the European session the USD/CAD pair was trading in a upward move and price reached resistance level 0.9935 (few pips above 50 EMA). During the New York session the USD/CAD pair started pushing within the bearish mood and price reached new 5 days low at 0.9872 level.This major pair finished Friday's New York session at 0.9905 level.Today in Asian session we could observe slightly bullish mood and the USD/CAD pair reached new daily high 0.9929 level. Today the USD/CAD pair is expected to test 0.9950 level.Also it is necessary to consider the data concerning the USD Federal Budget Balance that could affect the rate of the pair.
Support and Resistance levels
(S3) 0.9845 (S2) 0.9868 (S1) 0.9882 (PP) 0.9904 (R1) 0.9927 (R2) 0.9941 (R3) 0.9963
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished the b wave of the bigger wave A in the 0.9872. Presently we can observe the impulsive wave5 in the final wave C. In accordance with our wave rules and taking into account that the wave C is equal to the wave A we can define the potential targets with the help of Fibonacci extension (0.9842-1.0027-0.9872) with first Take Profit at level 0.9985(61.8% of wave a) and second Take Profit at 1.0016 (78.6% of wave a). For Stop Loss we can use 0.9870 support level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long position at levels 0.9935 with Stop Loss at 0.9870, Take Profit at 0.9985 and Take Profit 2 at 1.0016 are recommended.
