USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading in an upward move, developing final (Y) wave (coloured green) of the bigger wave (2) (coloured orange). Yesterday during the Asian and European sessions we could observe descending movement from 0.9797 towards 0.9768 level. Therefore, during the New York session the USD/CAD pair did not manage to hold this level and price started pushing higher reaching a new daily high at 0.9817 level. This major pair is developing impulsive (3) wave (coloured orange) at the moment and we are expecting to see price around 0.9593 level soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 0.9645 (127.2% of wave 1) and Take Profit 2 at 0.9593 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.9835 level as Stop Loss. Also it is necessary to monitor U.S. Trade Balance, Unemployment Claims, Import Prices m/m, FOMC Member Stein Speaks, Crude Oil Inventories and CAD Trade Balance, and NHPI m/m data that can change the rate of the pair.
Support and Resistance
(S3) 0.9752 (S2) 0.9770 (S1) 0.9782 (PP) 0.9800 (R1) 0.9818 (R2) 0.9830 (R3) 0.9848
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9790 with Stop Loss 0.9835, Take Profit at 0.9645, and Take Profit 2 at 0.9593 are recommended.