USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, corrective wave C (coloured green) of the bigger wave (4) (coloured blue) has been developing. During the Friday's Asian session we could observe ascending movement from 1.0100 towards the 1.0131 level and we can consider this move as the end of the zig-zag correction in the wave (4) (coloured blue). Therefore, during the European and New York sessions when development of the wave (5) started this commodity currency did not manage to hold this levels and the price dropped below 1.0075 area. At the moment the USD/CAD pair is trading around 1.0086 level and we expect to see the price staying in a bearish mood for the next few days. In accordance with our wave rules and taking into account that the wave 5 should retrace 61.8% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 0.9996 (61.8 % of wave 3). To reduce the risk, we can use resistance at 1.0130 as stop loss.
Support and Resistance
(S3) 1.0004 (S2) 1.0039 (S1) 1.0060 (PP) 1.0095 (R1) 1.0116 (R2) 1.0151 (R3) 1.0172
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0080 with stop loss at 1.0130 and take profit at 0.9996 are recommended.