USD/CAD Elliott Wave For the last few days, the USDCAD pair has been trading downwards, corrective wave b (coloured blue) of the bigger wave (y) (coloured green) has been developing. During Friday's Asian and European sessions we could observe ascending movements from 1.0307 towards the 1.0331 level. Therefore, during the early New York session this commodity currency did not manage to hold around the highs of the day, and the price retraced back to the 1.0297 level. At the moment, we see the USDCAD pair around 1.0299 and we are expecting to see one more push higher, before the price turns lower when the developing of the [c] (coloured black) starts. 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 1.0371 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0265 level as stop loss. Support and Resistance (S3) 1.0256 (S2) 1.0277 (S1) 1.0290 (PP) 1.0311 (R1) 1.0324 (R2) 1.0345 (R3) 1.0358 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long positions at the level of 1.0300 with stop loss at 1.0265 and take profit at 1.0371 are recommended.
