USD/CAD Elliott Wave The USD/CAD pair was trading within the upward move yesterday. During the European session we cold observe a descending move towards 0.9972 (200 EMA Support). USD/CAD did not manage to hold this level and price pushed to the 1.0032 level in New York. We can consider this move as the end of the wave A (coloured blue). Today during the Asian session the price started to move in a downward direction and we have observed it testing 200EMA support, today we are awaiting USD/CAD under 0.9950. Presently we can observe B wave. In accordance with our wave rules and taking into account that the wave B should retrace 61.8 or 78.6% of the wave A, we can define the potential targets with Fibonacci retracement (0.9925-1.0032); the First Take Profit at 0.9966 (61.8% of wave A) and Second Take Profit at 0.9945 (78.6% of wave A). For Stop Loss we can use the invalidation point at 1.0000. It is necessary to consider the data concerning the U.S Building Permits, Housing Starts, Capacity Utilization Rate, Industrial Production m/m and CAD BOC Rate Statement, Overnight Rate that can affect the rate of the pair.
Support and Resistance levels (S3) 0.9940 (S2) 0.9963 (S1) 0.9977 (PP) 0.9999 (R1) 1.0022 (R2) 1.0036 (R3) 1.0058
Trading Forecast Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why short positions at level 0.9975 with Stop Loss at 1.0000, Take Profit 1 at 0.9966 and Take Profit 2 at 0.9945 are recommended.
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