_source!.png)
Market Overview
Yesterday the USD/CAD pair was trading in the downward movement. During the European session the major started the descending movement towards the 0.9915 level.Therefore, in the eraly New York session we could observe the upward movement towards the 0.9948 level before the continuation of the bearish mood.The USD/CAD pair finished the trading day at daily low at 0.9918 level.Today during the early Asian session we could observe the bullish movement to the 0.9940 line. Today the USD/CAD pair is expected to test 1.0000 level. Also it is necessary to consider the data concerning the USD Core CPI m/m, Prelim UoM Consumer Sentiment and CAD Foreign Securities Purchases, Manufacturing Sales m/m that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9882 (S2) 0.9898 (S1) 0.9908 (PP) 0.9925 (R1) 0.9941 (R2) 0.9951 (R3) 0.9968
USD/CAD Elliott Wave Analysis
The USD/CAD has finished the wave 1 of the bigger C wave in the point 0.9946 and wave 2 in the point 0.9871. Presently we can observe the wave 3. 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 retracement (0.9872-0.9946-0.9871) with first Take Profit at level 0.9984 (138.2% of the wave (1)) and second Take Profit at 1.0002 (161.8% of the wave (1)). For Stop Loss we can use 0.9905 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 0.9940 with Stop Loss at 0.9905, Take Profit at 0.9984 and Take Profit 2 at 1.0002 are recommended.
