USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading in a sideways move, triangle correction (B) (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0366 towards the 1.0323 level and we can consider this move as the end of the final E wave of the bigger wave (B) (coloured blue). Therefore, during the New York session this commodity currency did not manage to hold this levels and price has reached a new high at 1.0405 level. At the moment the USD/CAD pair is trading around 1.0389 and we expect to see the price lower when development of the wave 2 (coloured green) starts. In accordance with our wave rules and taking into account that wave 2 should retrace 61.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0356 (61.8% of wave 1). To reduce the risk, we can use resistance point at 1.0444 level as stop loss.
Support and Resistance
(S3) 1.0263 (S2) 1.0293 (S1) 1.0346 (PP) 1.0376 (R1) 1.0429 (R2) 1.0459 (R3) 1.0512
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0420 with stop loss at 1.0444 and take profit at 1.0356 are recommended.