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Market Overview
Yesterday the USD/CAD pair was trading within the upward movement. During the Asian session the major started an ascending movement to the 0.9928 level (50 EMA). The USD/CAD pair did not manage to hold this level and price start pushing lower to the 0.9898 level in the European session.Therfore during the New York session we could observe continuation of the bullish mood and price reached a new daily high at 0.9945.Today in the Asian session we could observe downward movement in this major pair and price under 0.9895.Today the USD/CAD pair is expected to test 0.9950 level.Also it is necessary to consider the data concerning the USD Core Retail Sales m/m,Retail Sales m/m and FOMC Statement that could affect the rate of the pair.
Support and Resistance levels
(S3) 0.9874 (S2) 0.9892 (S1) 0.9904 (PP) 0.9923 (R1) 0.9941 (R2) 0.9953 (R3) 0.9972
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished the wave 1 of the biggerwave C in the point 0.9946 and the wave 2 in the point 0.9893. Presently we can observe the beginning of the wave 3 included in the bigger wave C. In accordance with our wave rules and taking into account that the wave 3 retraces 138.2 or 161.8% of the wave 1 we can define the potential targets with the help of Fibonacci extensions (0.9871-0.9946-0.9893) with first Take Profit at level 0.9996(138.2% of wave (1)) and second Take Profit at 1.0014 (161.8% of wave (1)). For Stop Loss we can use the invalidation point at 0.9871 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 0.9925 with Stop Loss at 0.9871, Take Profit at 0.9996 and Take Profit 2 at 1.0014 are recommended.
