USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading in an upward move developing 1 wave (coloured blue). During the European session we could observe ascending movement toward the 1.0255 level. Therefore during the New York session USD/CAD continued trading in a bullish mood and price reached the 1.0320 level. We can consider this move as the end of the 1 wave (coloured blue). At the moment this major pair is trading in a slight downward movement developing corrective 2 wave (coloured blue).
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 Fibonacci retracement (1.0200-1.0320) with Take Profit 1 at 1.0243 (61.8% of wave 1) and Take Profit 2 at 1.0220 (78.6% of wave 1). Resistance level at 1.0325 can be used as a Stop Loss point. Also it is necessary to monitor the U.S. Import Prices m/m, IBD/TIPP Economic Optimism and Federal Budget Balance data that can change the rate of the pair.

Support and Resistance Levels
(S3) 1.0161 (S2) 1.0205 (S1) 1.0232 (PP) 1.0276 (R1) 1.0320 (R2) 1.0347 (R3) 1.0391

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 1.0285 with Stop Loss at 1.0325 Take Profit 1 at 1.0243 and Take Profit 2 at 1.0220 are recommended.