FX.co ★ Weekly USD/CAD analysis

USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading higher. At this moment we think that corrective wave B (coloured red) of the bigger wave (D) (coloured blue) is currently in the move. During the Friday's European session we could observe ascending movement from 1.0095 towards the 1.0125 level. Therefore, during the New York session this commodity currency has continued trading in a bullish mood and the price has reached a new daily high at 1.0144 area. At the moment the USD/CAD pair is trading around 1.0210 and we expect to see the price below 0.9895 in the next few sessions. In accordance with our wave rules and taking into account that the wave D should retrace 61.8% of the waves B, we can define the potential targets with measuring wave B with take profit at 0.9838 (61.8% of wave B). To reduce the risk, we can use resistance point at 1.0285 level as stop loss.

Support and Resistance
(S3) 1.0072 (S2) 1.0092 (S1) 1.0104 (PP) 1.0124 (R1) 1.0144 (R2) 1.0156 (R3) 1.0176

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0240 with stop loss at 1.0285 and take profit at 0.9838 are recommended.