USD/CAD Elliott Wave Analysis
The USD/CAD pair was trading within the downward move yesterday.With a gap we saw at Monday opening we finish 1 wave (coloured pink). During the Asian session this major started to ascend toward to the 0.9990 level filling the gap. We can consider this weak bullish move as 2 wave (coloured pink), Therefore during the European and New York session we can observe strong bearish mood in the USD/CAD pair and price has reached 0.9887, this was end of 3 wave (coloured pink). At the end of New York session this major pair tried to push the price higher and we saw closing of Monday session at the 0.9904 level. Today during the Asian session we could observe price retest of the yesterday low and within this move we finish B wave (coloured green). Presently we can observe a start of the corrective C wave (coloured green). In accordance with our wave rules and taking into account that the wave C should be equal as wave A, we can define the potential targets with the Fibonacci extensions (0.9840-1.0035-0.9887); the First Take Profit at 0.9983 (50% of wave A) and Second Take Profit at 1.0006 (61.8% of wave A). For Stop Loss we can use the 0.9860 resistance level. Also it is necessary to consider the data concerning the USD Factory Orders m/m, FOMC Meeting Minutes and FOMC Member Williams Speaks that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9826 (S2) 0.9865 (S1) 0.9889 (PP) 0.9928 (R1) 0.9967 (R2) 0.9991 (R3) 1.0030
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the Upward movement. That is why Long position at levels 0.9930 with Stop Loss at 0.9860,Take Profit 1 at 0.9983 and Take Profit 2 at 1.0005 are recommended.