USD/CAD Elliott Wave For the last two days the USDCAD pair has been trading downwards, there is a good chance that (1) wave (coloured green) of the bigger [C] wave (coloured black) has already started. Yesterday, during the Asian and European sessions we could observe ascending movements from 1.0316 towards the 1.0338 level, and we can consider this move as the end of the 2 wave (coloured blue). Therefore, during the early New York session this major currency did not manage to hold this levels and the price dropped to the new low at the .0311 level. At the moment, the USDCAD pair is trading around 1.0325 and we are expecting to see continuation of the bearish movement in the next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0274 (161.8% of wave 1). To reduce the risk, we can use invalidation point at the 1.0338 level as stop loss. alternate: Wave [b] is still developing, and we should see the price at 1.0400, before the price turns lower in the [c] wave (coloured black), but in any case we should see bearish movement in the next couple of sessions. Support and Resistance (S3) 1.0288 (S2) 1.0300 (S1) 1.0315 (PP) 1.0327 (R1) 1.0342 (R2) 1.0354 (R3) 1.0369 Trading forecast Proceeding from Elliott Wave rules today, the trend is expected to begin downward movements. That is why short positions at the level of 1.0310 with stop loss at 1.038 and take profit at 1.0274 are recommended.
