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Market Overview
Yesterday the USD/CAD pair was trading within the upward trend. During the European session the major started ascending movement to the 0.9960 level. Therefore, during the New York session we could observe the strong bullish mood; the price has reached the new daily high at 1.0007 level.The USD/CAD pair did not manage to hold this level and at the end of the New York session we could observe the pricere bound to the 0.9985 level. Today during the Asian session we could observe an upward move to the yesterday's high where this pair find resistance and has started to decline. Today the USD/CAD pair is expected to test 50EMA support before we can see price above 1.0000 again. Also it is necessary to consider the data concerning the CAD Core CPI m/m, CPI m/m and USD New Home Sales that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9871 (S2) 0.9908 (S1) 0.9931 (PP) 0.9968 (R1) 1.0005 (R2) 1.0028 (R3) 1.0065
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 end of wave 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 Take Profit at level 1.0049 (161.8% of the wave 1. For Stop Loss we can use 0.9960 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 0.9980 with Stop Loss at 0.9960 and Take Profit 1.0049 are recommended.
