USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading upwards as we expected, impulsive wave 3 (coloured pink) of the bigger wave 5 (coloured blue) was developing. Yesterday during the early Asian session we could observe descending movement towards the 0.9907 level, and we can consider this move as the end of the corrective wave 2 (coloured pink). Therefore, during the European and New York session when developing of the wave 3 start this commodity pair started pushing higher reaching a new high at 0.9958 level. At the moment the USD/CAD pair is trading around 0.9945 level, and we expect price to be around 1.0000 level today. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9988 (161.8% of wave 1). To reduce the risk, we can use support at 0.9932 level as stop loss.
Support and Resistance
(S3) 0.9889 (S2) 0.9908 (S1) 0.9920 (PP) 0.9939 (R1) 0.9958 (R2) 0.9970 (R3) 0.9989
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9950 with stop loss 0.9932 and take profit at 0.9988 are recommended.