USD/CAD Elliott Wave Last week the USD/CAD pair has finished development of the corrective wave (C) (coloured green) and started to develop the wave (1) (coloured green). Presently we can observe developing of the 4 wave (coloured blue) of the bigger (1) wave coloured green). During the Friday's European session we could observe ascending movement towards the 0.9895 level. Therefore during the New York session we could observe continuation of the bullish mood and price above 0.9955 level.Today during the early Asian session price start pushing higher and reached 10 Days high at 0.9985 level. We can consider this move as end of the 3 wave (coloured blue). In accordance with our wave rules and taking into account that the wave 4 retraces 100% of the wave 2, we can define the potential targets with messuring the 2 wave and Take Profit at 0.9917 (100% of wave 2). For Stop Loss the resistance level at 0.9985 can be used. It is also necessary to consider the data concerning the CAD Building Permits m/m, Gov Council Member Murray Speaks and USD Consumer Credit m/m that can affect the rate of the pair.
Support and Resistance levels (S3) 0.9823 (S2) 0.9862 (S1) 0.9886 (PP) 0.9925 (R1) 0.9964 (R2) 0.9988 (R3) 1.0027
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 0.9950 with Stop Loss at 0.9985 and Take Profit at 0.9917 are recommended.
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