USD/CAD Elliott Wave
For the last few days, the USD/CAD pair has been trading upwards, impulsive wave 3 (coloured green) of the bigger wave (A) (coloured blue) has started its development. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0151 towards the 1.0205 level. Therefore, during the early New York session this commodity currency did not manage to hold this levels and the price has retraced to the new daily low at the 1.0148 level. We can consider this movement as the end of the corrective sub-wave 4 (coloured red) of the bigger wave 3 (coloured green). At the moment the USD/CAD pair is trading around 1.0248 and we expect to see the price higher for the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0308 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0200 level as stop loss.
Support and Resistance
(S3) 1.0097 (S2) 1.0123 (S1) 1.0156 (PP) 1.0182 (R1) 1.0215 (R2) 1.0241 (R3) 1.0274
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 1.0200 and take profit at 1.0308 are recommended.