USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has been trading sideways, corrective wave .5 (coloured green) of the bigger wave C (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe an ascending movement from 1.0470 towards the 1.0510 level and we can consider this move as the end of the first leg of this .5 wave (coloured green). Therefore, during the New York session this commodity currency did not manage to hold this levels and the price has retraced back to 1.0473. At the moment, the USDCAD pair is trading around 1.0500 and we are expecting to see the price moving higher for the next few days. In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 4, so we can define the potential targets with measuring wave 4 with take profit at 1.0589 (123.6% of wave 4). To reduce the risk, we can use invalidation point at 1.0470 level as stop loss.
Support and Resistance
(S3) 1.0433 (S2) 1.0453 (S1) 1.0470 (PP) 1.0490 (R1) 1.0507 (R2) 1.0527 (R3) 1.0544
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movement. That is why long position at the level of 1.0510 with stop loss at 1.0470 and take profit at 1.0589 are recommended.