USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in an upward move like we expected, impulsive 5 wave (coloured blue) of the bigger wave (1) (coloured green) was developing. During the Friday's Asian and European sessions we could observe ascending movement toward the 0.9967 level. Therefore, during the New York session this commodity pair continued trading in a bullish mood and the price reached a new high at 0.9970 level. We can consider this move as the end of the ending diagonal of the 5 impulsive wave (coloured blue) and we are expecting to see the price lower today. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring wave 1 with take profit at 0.9879 (61.8% of wave 1). To reduce the risk, we can use invalidation at 0.9969 level as stop loss.
Support and Resistance
(S3) 0.9928 (S2) 0.9940 (S1) 0.9947 (PP) 0.9960 (R1) 0.9972 (R2) 0.9979 (R3) 0.9992
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9940 with stop loss 0.9969 and take profit at 0.9879 are recommended.