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Market Overview
Yesterday the USD/CAD pair was trading upwards. During the European session the major started a descending movement to the 0.9873 level. Therefore, during the New York session we could observe strong bullish mood and price reaching new daily high at 0.9934.
The USD/CAD pair did not manage to hold this level and at the end of the New York session we could observe the price to return back to 200 EMA around 0.9915 level. Today during the Asian session we could observe an upward move to 0.9940 level. Today the USD/CAD pair is expected to test 1.0000 level. Also it is necessary to consider the data concerning the CAD Core Retail Sales m/m, Retail Sales m/m and USD Unemployment Claims that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9849 (S2) 0.9872 (S1) 0.9886 (PP) 0.9910 (R1) 0.9933 (R2) 0.9947 (R3) 0.9971
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished 1 wave (colored pink) of the bigger C wave (colored blue) in the point 0.9968, and 2 wave (colored pink) in the point 0.9873. Presently we can observe 3 wave (colored pink). Proceeding from our wave rules and considering that the wave 3 will retrace 161.8% of 1 wave, we can define the potential targets with the help of Fibonacci extension (0.9859-0.9968-0.9873) with first Take Profit at level 1.0023 (138.2% of the wave 1 and second Take Profit at 1.0049 (161.8% of the wave 1). For Stop Loss we can use 0.9910 support level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin an upward movement. That is why long positions at levels 0.9950 with Stop Loss at 0.9910,Take Profit 1.0023 and Take Profit 2 at 1.0049 are recommended.
