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Market Overview
Yesterday the USD/CAD pair was trading within the upward trend. During the European session the major started to ascend towards 0.9930. Therefore, during the New York session we were able to observe continuation of the bullish mood; the price reached the new daily high at 0.9955 at the end of session. Today during the Asian session we could observe continuation of upward trend and price reached the 0.9975 level. Today the USD/CAD pair is expected to test the 0.9900 level. Also it is necessary to consider the data concerning the USD Core Durable Goods Orders m/m, Durable Goods Orders m/m and Crude Oil Inventories that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9881 (S2) 0.9902 (S1) 0.9915 (PP) 0.9936 (R1) 0.9957 (R2) 0.9970 (R3) 0.9991
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished A wave (coloured blue) of the bigger (C) wave (coloured green) in the point 0.9976. Presently we can observe start of B wave (coloured blue). In accordance with our wave rules and taking into account that the wave B should retrace from 50 - 61.8% of wave A, we can define the potential targets with the Fibonacci retracement (0.9899-0.9976); the First Take Profit at 0.9937 (50% of wave A) and Second Take Profit at 0.9928 (61.8% of wave A). For Stop Loss we can use the 1.0000 resistance level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short position at levels 0.9960 with Stop Loss at 1.0000, Take Profit at 0.9937 and Take Profit 2 at 0.9928 are recommended.
