USD/CAD Elliott Wave
For the last few sessions, the USD/CAD pair has started to go lower, corrective wave [x] (coloured green) or wave [i] (coloured green) has started developing. In the USD/CAD 1-hour chart we can observe a descending movement from the 1.1198 level, possible end of the [y] wave (coloured green), and we are still waiting for a fresh sell signal when the price breaks the lower trend line. Aggressive traders can already try small short position against the high at the 1.1198 level. In accordance with our wave rules and taking into account that wave X2 should retrace 50-61.8% of wave Y, we can define potential targets measuring wave Y with take profit at 1.0895-1.0825 (50-61.8% of wave Y). The RSI indicator is showing strong bullish divergence that confirms a possible end of the [y] wave.

Support and Resistance
(S3) 1.0995, (S2) 1.1036, (S1) 1.1094, (PP) 1.1135, (R1) 1.1193, (R2) 1.1234, (R3) 1.1292.

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin a downward movement. That is why short positions at the level of 1.1150 with stop loss at 1.1200 and take profit at 1.0895 are recommended.