USD/CAD Elliott Wave Yesterday the USD/CAD pair has started to move in a bearish mood. During the European session we could observe the descending movement towards 0.9880 level. We can consider this movement as end of the wave B (coloured pink). Therefore, during the New York session we could observe the strong upward move towards the 0.9961 level. We can consider this move as end of the wave 4 (coloured blue). Today during the Asian session this major has started in a bearish mood and we can expect the price to be located around 0.9900 level. Presently we can observe the start of the 5 wave of the bigger 3 wave (coloured green). In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.0049-0.9925-1.0032); the Take Profit at 0.9832 (161.8% of wave 1) .As Stop Loss the Invalidation point 0.9900 can be used. Also it is necessary to consider the data concerning the CAD Core CPI m/m ,CPI m/m, IMF Meetings and G20 Meetings that can affect the rate of the pair.
Support and Resistance levels (S3) 0.9848 (S2) 0.9880 (S1) 0.9900 (PP) 0.9932 (R1) 0.9964 (R2) 0.9984 (R3) 1.0016
Trading Forecast Proceeding from Elliott Wave Rules today the trend is expected to begin the downward movement. That is why short positions at level 0.9940 with Stop Loss at 0.9900, Take Profit 1 at 0.9832 and Take Profit 2 at 0.9857 are recommended.
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