USD/CAD Elliott Wave
Since our last analyses, the USD/CAD pair has been trading downwards, just like we expected, corrective wave [a] (coloured black) of the bigger C wave has started developing. During Wednesday's Asian and European sessions, we could observe a descending movement from 1.0495 towards the 1.0468 level. Therefore, during the New York session this major currency has continued trading in the bearish mood, and the price reached a new two-day low at the 1.0444 level. At the moment, the USD/CAD pair is trading around 1.0475, and we are expecting to see more downward movements in the next couple of days. 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 1.0411 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0500 level as stop loss.
Support and Resistance
(S3) 1.0396, (S2) 1.0423, (S1) 1.0440, (PP) 1.0467, (R1) 1.0484, (R2) 1.0511, (R3) 1.0528.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.0480 with stop loss at 1.0600 and take profit at 1.0079 are recommended.