USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has been trading upwards, corrective wave .y (coloured black) of the bigger wave b (coloured blue) has been developing. During Monday's Asian and European sessions, we could observe descending movements from 1.0427 towards the 1.0396 level. Therefore, during the New York session this commodity pair did not manage to hold this level and the price retraced back to the 1.0426 level. At the moment, the USDCAD pair is trading around the 1.0438 level, and we should see one more push lower today in the FLAT correction in the .y wave (coloured black). 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 1.0382 (50% of wave A). To reduce the risk, we can use invalidation point at the 1.0453 level as stop loss.
Support and Resistance
(S3) 1.0372 (S2) 1.0385 (S1) 1.0402 (PP) 1.0415 (R1) 1.0432 (R2) 1.0445 (R3) 1.0462
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short positions at the level of 1.0410 with stop loss at 1.0453 and take profit at 1.0382 are recommended.
