USD/CAD Elliott Wave Last week the USD/CAD pair was trading in bullish mood developing 3 wave (coloured green). Yesterday this major opened with 20 pips gap and price continued pushing lower. During the European session we could observe descending move toward the 1.0222 level. Therefore during the New York session the USD/CAD pair started pushing higher and reached the 1.0265 level. Today during the Asian session we could observe continuation of the bearish mood and price reached the 1.0205 level (200EMA). Presently the USD/CAD pair is in the corrective 4 wave (Coloured green) and I am waiting for the price to lower today. In accordance with our wave rules and taking into account that the wave 4 retraces 50% of the wave 3, we can define the potential targets with Fibonacci retracement (0.9956-1.0310) with Take Profit 1 at 1.0175 (38.2% of wave 3) and Take Profit 2 at 1.0134 (50% of wave 3). The resistance level at 1.0270 can be used as Stop Loss. Also it is necessary to consider the data concerning the U.S. S&P/CS Composite-20 HPI y/y and CB Consumer Confidence that can affect the rate of the pair.
Support and Resistance Levels (S3) 1.0195 (S2) 1.0214 (S1) 1.0225 (PP) 1.0243 (R1) 1.0262 (R2) 1.0273 (R3) 1.0291
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 1.0205 with Stop Loss at 1.0270, Take Profit 1 at 1.0175 and Take Profit 2 at 1.0134 are recommended
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