USD/CAD Elliott Wave Yesterday the USD/CAD pair has finished developing of the 3 wave (coloured blue) and start pushing higher for the 4 wave (coloured blue). During the European session we could observe the upward movement toward 0.9825 level (50 EMA Resistance). Therefore during the New York session we could observe price above 200EMA. At the end of the New York session we could see the price reaching new daily high at 0.9893 level.Today during the Asian session the USD/CAD pair was trading in a sideways move. We are expecting to see price higher today in a New York session for the end of the 4 wave. In accordance with our wave rules and taking into account that the wave 5 retraces 100% of the wave 1, we can define the potential targets with simple measuring the first wave range; the First Take Profit at 0.9825 (61.8% of wave 1) and Second Take Profit at 0.9779 (100% of wave 1). For Stop Loss we can use the invalidation point at 0.9927. Also it is necessary to consider the data concerning the U.S ISM Manufacturing PMI, FOMC Member Williams Speaks, FOMC Member Lacker Speaks, FOMC Member Lockhart Speaks and CAD BOC Gov Carney Speaks that can affect the rate of the pair and Pianalto’s speech that can affect the rate of the pair.
Support and Resistance levels (S3) 0.9765 (S2) 0.9800 (S1) 0.9821 (PP) 0.9856 (R1) 0.9891 (R2) 0.9912 (R3) 0.9947
Trading Forecast Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short positions at level 0.9900 with Stop Loss at 0.9927, Take Profit 1 at 0.9825 and Take Profit 2 at 0.9779 are recommended.
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