USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading downwards, corrective wave Y (coloured blue) of the bigger wave (4) (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0276 towards the 1.0211 level. Therefore, during the New York session this commodity currency did not manage to hold this level and the price retraced back to 1.0226 area. At the moment the AUD/USD pair is trading around 1.0210 level and we expect to see the price above 1.0400 in the next few days. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0467 (100% of wave 1). To reduce the risk, we can use support at 1.0180 level as stop loss.
Support and Resistance
(S3) 1.0121 (S2) 1.0166 (S1) 1.0193 (PP) 1.0238 (R1) 1.0265 (R2) 1.0310 (R3) 1.0337
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0250 with stop loss at 1.0180 and take profit at 1.0467 are recommended.