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USD/CAD Elliott Wave
Last week the USD/CAD pair was developing the impulsive wave (i) (coloured green). During the Friday's European session we could observe t he descending movement toward 0.9926 level. We can consider this move as 5 wave (coloured blue) of the bigger (i) wave (coloured green). Therefore, we can observe the fact that the price has started pushing higher during the New York session, the USD/CAD pair finish last week in the point 0.9993. Today during the early Asian session we could observe the continuation of the bullish mood and price reached 1.0000 level. Presently we can observe the end of the A wave (coloured blue). Presently the USD/CAD pair is expected to decrease. In accordance with our wave rules and taking into account that the wave B retraces 50% of the wave A, we can define the potential targets with Fibonacci retracement (0.9925-1.0010); the First Take Profit at 0.9967 (50% of wave A) and Second Take Profit at 0.9944 (78.6% of wave A). For Stop Loss we can use the support level 1.0051. Also it is necessary to consider the data concerning the CAD Foreign Securities Purchases and USD Core Retail Sales m/m, Retail Sales m/m, Empire State Manufacturing Index, TIC Long-Term Purchases, Business Inventories m/m, FOMC Member Pianalto Speaks that can affect the rate of the pair
Support and Resistance levels
(S3) 0.9903 (S2) 0.9929 (S1) 0.9945 (PP) 0.9971 (R1) 0.9997 (R2) 1.0013 (R3) 1.0039
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why short positions at level 1.0000 with Stop Loss at 1.050 and Take Profit at 0.9944 are recommended.
