USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading upwards, corrective wave B (coloured green) of the bigger wave (B) (coloured blue) has finished developing. During the Monday's Asian and European sessions we could observe sideways movement between 1.0312 and 1.0331 level. Therefore, during the New York session this major currency did not manage to hold of this levels and the price has pushed higher reaching 1.0340 area. At the moment the USD/CAD pair is trading around 1.0350 and we expect to see the price lower when development of the wave C (coloured green) starts. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0257 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0360 level as stop loss.
Support and Resistance
(S3) 1.0278 (S2) 1.0292 (S1) 1.0315 (PP) 1.0329 (R1) 1.0352 (R2) 1.0366 (R3) 1.0389
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0340 with stop loss at 1.0360 and take profit at 1.0257 are recommended.