USD/CAD Elliott Wave Yesterday USD/CAD was developing 5 wave (coloured blue) of the bigger (1) wave (coloured green). During the European session we could observe ascending movement toward the 0.9980 level. Therefore during the New York session we could observe continuation of the bullish mood and price has reached new high at the 1.0022 level. Today during the Asian session we were able to observe strong bullish mood and price braking the yesterday’s high. We expect to see the downward movement soon for the start of the (2) wave (coloured green). 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 (0.9799-1.0477); the First Take Profit at 0.9923 (50% of wave 1) and Second Take Profit at 0.9894 (61.8% of wave 1). As Stop Loss we can use the resistance point at 1.0057. It is also necessary to consider the data concerning the U.S Crude Oil Inventories, FOMC Member Pianalto Speech and 10-year Bond Auction that can affect the rate of the pair.
Support and Resistance levels (S3) 0.9878 (S2) 0.9916 (S1) 0.9940 (PP) 0.9977 (R1) 1.0015 (R2) 1.0039 (R3) 1.0076
Trading Forecast Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short positions at level 1.0000 with Stop Loss at 1.0050, Take Profit 1 at 0.9923 and Take Profit 2 at 0.9894 are recommended.
Nicola Delic is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.