USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has been trading downwards, the corrective wave B (coloured blue) of the bigger wave (B) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe a strong descending movement from 1.0402 towards the 1.0364 level. Therefore, during the New York session this commodity currency continued trading in a bearish mood and the price reached a new low at 1.0346 level. We can consider this move as the end of wave B (coloured blue). At the moment, the USD/CAD pair has been trading around 1.0365 level and we are expecting to see the price higher for the next few days. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define potential targets with measuring wave A with take profit at 1.0508 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0250 level as stop loss.
Support and Resistance
(S3) 1.0302 (S2) 1.0330 (S1) 1.0346 (PP) 1.0374 (R1) 1.0390 (R2) 1.0418 (R3) 1.0434
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin an upward movement. That is why long positions at the level of 1.0380 with stop loss at 1.0250 and take profit at 1.0508 are recommended.