USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading upwards as we expected. Impulsive wave (1) (coloured pink) of the bigger wave 5 (coloured blue) was developing. During the early New York session we could observe strong bullish movement towards the 0.9950 level and we can consider this move as the end of the wave (1) (coloured pink). At the moment we are at the end of the corrective wave (2) and we expect the price being higher today when development of the wave (3) starts. In accordance with our wave rules and taking into account that the wave 5 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1, with take profit at 0.9997 (100% of wave 1). To reduce the risk, we can use invalidation at 0.9906 level as stop loss.
Support and Resistance
(S3) 0.9893 (S2) 0.9909 (S1) 0.9918 (PP) 0.9934 (R1) 0.9950 (R2) 0.9959 (R3) 0.9975
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9930 with stop loss 0.9906 and take profit at 0.9997 are recommended.