USD/CAD Elliott Wave Last week, the USDCAD pair was trading downwards, impulsive wave (i) (coloured green) of the bigger [c] wave (coloured black) was developing. During Friday's Eureopan session we could observe ascending movements from 1.0321 towards the 1.0339 level, and we can consider this move as the end of the corrective wave ii (coloured blue). Therefore, during the early New York session this commodity currency did not manage to hold this levels and price dropped to a new low at the 1.0288 level. At the moment, the USDCAD pair is trading around 1.0320, and we are expecting to see more bearish movements within next few sessions. In accordance with our wave rules and taking into account that wave 3 should retrace 261.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0222 (261.8% of wave 1). To reduce the risk, we can use invalidation point at the 1.0339 level as stop loss. Alternate: Wave [b] is still developing, and we should see the price at 1.0400 before it turns lower in the [c] wave (coloured black), but in any case we should see bearish movements within next couple of sessions. Support and Resistance (S3) 1.0226 (S2) 1.0257 (S1) 1.0276 (PP) 1.0307 (R1) 1.0326 (R2) 1.0357 (R3) 1.0376 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 1.0300 with stop loss at 1.0339 and take profit at 1.0222 are recommended.
