Market Overview
Yesterday the USD/CAD pair was trading within the sideways trend. During the European session the major started to ascend towards 1.0005. Therefore, during the New York session we were able to observe the strong bearish mood; the price reached the new daily low at 0.9962 at the end of session. Today during the Asian session we observed continuation of sideways trend and price are going from 0.9952 to 0.9980 level. Today the USD/CAD pair is expected to break 200EMA support and test the 0.9900 level. Also it is necessary to consider the data concerning the CAD GDP m/m that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9926 (S2) 0.9948 (S1) 0.9961 (PP) 0.9982 (R1) 1.0004 (R2) 1.0017 (R3) 1.0038
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished A wave (colored pink) of the bigger B wave (colored blue) in the point 0.9952. Presently we can observe end of B wave (colored pink). In accordance with our wave rules and taking into account that the wave B should retrace from 50 - 61.8% of wave A, we can define the potential targets with the Fibonacci retracement (0.9899-0.9999); the First Take Profit at 0.9937 (61.8% of wave A) and Second Take Profit at 0.9921 (78.6% of wave A). For Stop Loss we can use the 0.9970 resistance level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short position at levels 0.9950 with Stop Loss at 0.9970, Take Profit at 0.9937 and Take Profit 2 at 0.9921 are recommended.