USD/CAD Elliott Wave
Since our last analysis the USD/CAD has continued trading higher just like we expected, impulsive wave 3 (coloured blue) of the bigger wave [1] (coloured red) has finished developing. During the Tuesdays Asian and European sessions we could observe ascending movement from 1.0177 towards the 1.0213 level. Therefore, during the New York session this commodity has continued trading in a bullish mood and the price has reached a new daily high at 1.0216 level. At the moment the USD/CAD pair is developing final wave 5 (coloured blue) of the bigger wave [1] (coloured red), so we expect to see the continuation of the bullish movement in the next few sessions. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0256 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0170 level as stop loss.
Support and Resistance
(S3) 1.0147 (S2) 1.0162 (S1) 1.0187 (PP) 1.0202 (R1) 1.0227 (R2) 1.0242 (R3) 1.0267
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0200 with stop loss at 1.0170 and take profit at 1.0256 are recommended.