USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, impulsive wave iii (coloured blue) of the bigger wave (a) (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0607 toward 1.0685 level. Therefore, during the New York session this commodity currency has continued trading aggressively higher and at the end the price has reached a high at 1.0780. At the moment the USD/CAD pair is trading around 1.0807 and we should see more upward movements while price stays above 1.0720 (short-term invalidation). In accordance with our wave rules and taking into account that wave 5 should retrace 123.6% of wave 3, we can define the potential targets with measuring wave 5 with take profit at 1.0865 (123.6% of wave W).
Support and Resistance
(S3) 1.0554 (S2) 1.0602 (S1) 1.0684 (PP) 1.0732 (R1) 1.0814 (R2) 1.0862 (R3) 1.0944
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 1.0780 with stop loss at 1.0720 and take profit at 1.0865 are recommended.