USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading downwards, corrective wave (2) (coloured pink) of the bigger wave 3 (coloured blue) was developing. During the Friday's Asian session we could observe ascending movement from 1.0238 towards the 1.0263 level and we can consider this movement as the end of the impulsive wave (1) (coloured pink). Therefore, during the European and New York sessions this currency did not manage to hold this level and the price retraced to the 1.0219 area. At the moment the USD/CAD pair is trading around 1.0217 level and we expect to see the price above 1.0300 in the next few days. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0370 (161.8% of wave 1). To reduce the risk, we can use invalidation at 1.0197 level as stop loss.
Support and Resistance
(S3) 1.0165 (S2) 1.0192 (S1) 1.0209 (PP) 1.0236 (R1) 1.0253 (R2) 1.0280 (R3) 1.0297
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0230 with stop loss at 1.0197 take profit at 1.0370 are recommended.