USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading in a downward move, developing 5 wave (coloured blue) of the bigger (1) wave (coloured green). Yesterday, during the European and New York sessions, we could observe a strong descending move towards the 0.9713 level and we can consider this move as the end of the (1) wave (coloured green). Today, during the early Asian session, the USD/CAD pair started pushing higher and the price reached 0.9738 level. At the moment this major pair is developing impulsive (3) wave (coloured purple) of the bigger wave A (coloured blue) and we are expecting to see the price higher today. In accordance with our wave rules and taking into account that the wave 3 retraces 261.8% of the wave 1, we can define the potential targets with Fibonacci extensions (0.9713-0.9735-0.9714) with Take Profit at 0.9773 (261.8% of wave 1). Invalidation Point at 0.9714 can be used as Stop Loss.
Support and Resistance
(S3) 0.9640 (S2) 0.9677 (S1) 0.9704 (PP) 0.9741 (R1) 0.9768 (R2) 0.9805 (R3) 0.9832
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9740 with Stop Loss 0.9714 and Take Profit 0.9773 are recommended.