USD/CAD Elliott Wave During the last few days the USD/CAD pair was developing 5 wave of the bigger (1) wave. Yesterday during the Asian and European session we could observe the descending movement towards the 1.0261 level.We can consider this move as the end of the 4 wave (coloured blue) of the bigger 5 wave.Therefore during the New York the USD/CAD pair started pushing higher for developing 5 wave and price reached new high at 1.0365 level.Today during the Asian session we could observe the continuation of the bullish mood and price testing 1.0400 level. We can consider this move as the end of the 5 wave (coloured green) and with this move we finished bigger (1) wave. Presently we can observe the start of the (2) wave and I think in June the USD/CAD will retrace back to the 1.0100 level. In accordance with our wave rules and taking into account that the wave 2 retraces 61.8% of the wave 1, we can define the potential targets with Fibonacci retracement (0.9798-1.0400) with Take Profit 1 at 1.0166 (38% of wave 1) , Take Profit 2 at 1.0095 (50% of wave 1) And Take Profit 3 at 1.0026 (61.8% of wave 1). We can use support at 1.0400 as stop loss point.
Support and Resistance Levels (S3) 1.0214 (S2) 1.0253 (S1) 1.0278 (PP) 1.0318 (R1) 1.0357 (R2) 1.0382 (R3) 1.0422
Trading Forecast Proceeding from Elliott Wave Rules this week the trend is expected to begin the downward movement. That is why Short positions at level 1.0350 with Stop Loss at 1.400, Take Profit 1 at 1.0166,Take Profit 2 at 1.0095 and Take Profit 3 at 1.0026 are recommended
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