USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in a downward move developing corrective wave 2 (coloured blue) of the bigger wave (1) (coloured green). During the European session we could observe strong descending movement towards the 1.0170 level and we can consider this move as the end of the corrective wave (A) (coloured pink). Therefore, during the early New York session the USD/CAD pair started pushing higher but this major only retraces to 1.0200 level before downward move starts again. Today the USD/CAD pair continued trading in a bearish mood and the price is currently trading around 1.0150 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.0065-1.0230-1.0138) with Take Profit 1 at 1.0298 (100% of wave 1) and Take Profit 2 at 1.0400 (161.8% of wave 1). Start of the wave 1 at 1.0065 level can be used as Stop Loss. Also it is necessary to monitor the U.S. Core Durable Goods Orders m/m, Unemployment Claims, Durable Goods Orders m/m, Pending Home Sales m/m and Treasury Sec Geithner Speaks data that can change the rate of the pair.
Support and Resistance
(S3) 1.0083 (S2) 1.0118 (S1) 1.0140 (PP) 1.0175 (R1) 1.0210 (R2) 1.0232 (R3) 1.0267
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0165 with Stop Loss 1.0065, Take Profit 1 at 1.0298 and Take Profit 2 at 1.0400 are recommended.