USD/CAD Elliott Wave
For the last couple of days, the USD/CAD pair has been trading upward, just like we expected, impulsive wave iii (coloured blue) of the bigger wave (c) (coloured red) has been developing. In the 1-hour chart of the USD/CAD pair we can see that the strong ascending movements from 1.0951 represent impulsive wave iii (coloured blue), we should already be in the corrective wave iv at the moment, but while price stays above 1.0950 we are still expecting to see one more push higher and that is why long positions are going to be our game plan for today. 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 1.1200 (100% of wave (A)). Swing traders can also try the same position since next clear swing signal will come only after wave (C) complete the cycle.
Support and Resistance
(S3) 1.0858, (S2) 1.0905, (S1) 1.0996, (PP) 1.1043, (R1) 1.1134, (R2) 1.1181, (R3) 1.1272.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.1077 with stop loss at 1.1040 and take profit at 1.1200 are recommended.