USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading downwards, just like we expected, impulsive wave 3 (coloured green) of the bigger wave (3) (coloured blue) has finished its developing. Yesterday, during the Asian and European sessions we could observe strong descending movement from 1.0257 towards the 1.0223 level. Therefore, during the New York session this currency has continued to trade with a bearish mood and the price dropped to the new low at 1.0185 level. At the moment the USD/CAD pair is trading around 1.0200 and we expect to see the price pushing lower when development of the 4 wave (coloured green) ends. In accordance with our wave rules and taking into account that the wave 3 should retrace 200% of the waves 1, we can define the potential targets with measuring wave A with take profit at 1.0165 (200% of wave 1). To reduce the risk, we can use invalidation point at 1.0250 as stop loss.
Support and Resistance
(S3) 1.0097 (S2) 1.0141 (S1) 1.0170 (PP) 1.0214 (R1) 1.0243 (R2) 1.0287 (R3) 1.0316
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0225 with stop loss at 1.0250 and take profit at 1.0165 are recommended.