USD/CAD Elliott Wave Yesterday during the European session we could observe the ascending movement towards the 1.0050 level. We can consider this movement as the end of the 1 wave (coloured blue) of the bigger (3) wave (coloured green). Therefore during the New York session the USD/CAD pair start pushing lower towards the 1.0012 level (100 EMA support). Having tested this level the USD/CAD pair pushed slightly higher and we could observe the price back at 1.0040. Today during the Asian session we could observe the continuation of the bearish mood and price touching 0.9993 level. We can consider this move as the end of the wave 2 (coloured blue). Presently we are in the 3 impulsive wave (coloured blue). In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (0.9953-1.0050-0.9993) with Take Profit 1 at 1.0128 (161.8% of wave 1) and Take Profit 2 at 1.0165 (200% of wave 1). The Invalidation point at 0.9954 level can be used as Stop Loss. Also it is necessary to consider the data concerning the U.S Core CPI m/m, Core Retail Sales m/m, Retail Sales m/m, CPI m/m, Empire State Manufacturing Index, TIC Long-Term Purchases and Business Inventories m/m that can affect the rate of the pair.
Support and Resistance levels (S3) 0.9964 (S2) 0.9987 (S1) 1.0002 (PP) 1.0026 (R1) 1.0049 (R2) 1.0064 (R3) 1.0088
Trading Forecast Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 1.0020 with Stop Loss at 0.9954, Take Profit 1 at 1.0128 and Take Profit 2 at 1.0165 are recommended.
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