USD/CAD Elliott Wave Yesterday the USD/CAD pair was trading in a upward move. During the European session we could observe ascending move toward the 1.0282 level (new daily high). Therefore during the early New York session price pushed lower and reached new daily low at the 1.0225 level. We can consider this move as end of the 4 wave (coloured pink) of the bigger 5 wave (coloured blue). During the second half of the NY session price started pushing higher reaching a new daily high at the 1.0294 level. Today during the Asian session price started lower and the USD/CAD pair is currently trading around 1.0255. In accordance with our wave rules and taking into account that the wave 5 retraces 161.8% of the wave 1, we can define the potential targets with measuring the 1 wave with Take Profit 1 at 1.0306(161.8% of wave 1) and Take Profit 2 at 1.0342 (200% of wave 1). We can use 1.0225 as stop loss point. Also it is necessary to consider the data concerning the U.S. Revised UoM Consumer Sentiment, Revised UoM Inflation Expectations that can affect the rate of the pair.
Support and Resistance levels (S3) 1.0191 (S2) 1.0217 (S1) 1.0234 (PP) 1.0261 (R1) 1.0287 (R2) 1.0304 (R3) 1.0331
Trading Forecast Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 1.0275 with Stop Loss at 1.225, Take Profit 1 at 1.0306 and Take Profit 2 at 1.0342 are recommended.