USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading downwards, corrective wave (A) (coloured blue) of the bigger wave B (coloured red) was developing. Yesterday during the European session we could observe descending movement from 1.0257 towards the 1.0204 level. Therefore, during the New York session this commodity currency has tried to push higher but after finding strong resistance around the 1.0240 area price fall back to European low at 1.0204. At the moment the USD/CAD pair is trading around 1.0238 and we expect to see the price lower for the next few sessions. In accordance with our wave rules and taking into account that wave B should retrace 50% of waves A, we can define the potential targets with measuring wave A with take profit at 1.0169 (50% of wave A). To reduce the risk, we can use resistance point at 1.0260 level as stop loss.
Support and Resistance
(S3) 1.0170 (S2) 1.0191 (S1) 1.0203 (PP) 1.0224 (R1) 1.0245 (R2) 1.0257 (R3) 1.0278
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0230 with stop loss at 1.0260 and take profit at 1.0169 are recommended.