USD/CAD Elliott Wave
For the last few days the USDCAD pair has been trading upwards, corrective wave .c (coloured black) of the bigger b wave (coloured blue) has been developing. During the Monday's Asian and European sessions, we could observe an ascending movement from 1.0284 towards the 1.03079 level. Therefore, during the early New York session this commodity currency continued trading in a bullish mood and the price reached a new daily high at 1.0307. At the moment, the USDCAD pair is trading around 1.0297 area, and we are expecting to see the price higher today for the final push higher in this FLAT b wave (coloured blue). In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0345 (50% of wave A). To reduce the risk, we can use invalidation point at 1.0280 as stop loss.
Support and Resistance
(S3) 1.0277, (S2) 1.0283, (S1) 1.0292, (PP) 1.0298, (R1) 1.0307, (R2) 1.0313, (R3) 1.0322.
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 1.0300 with stop loss at 1.0280 and take profit at 1.0345 are recommended.
