USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in a downward move, developing final (5) wave (coloured purple) of the bigger 5 wave (coloured blue). Yesterday during the Asian and European sessions we could observe the price trading in a sideways move between 0.9775 and 0.9789 level. Therefore, during the early New York session, the USD/CAD pair did not manage to hold this levels and price started pushing lower reaching a new daily low at 09755 level. At the moment, price is trading around 0.9755 level and we are expecting to see the price higher when 5 smaller wave of the bigger (5) wave (coloured purple) is over. 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 with Fibonacci retracements (0.9917-0.9720) with Take Profit at 0.9837 (61.8% of wave 1). Support at 0.9700 can be used as Stop Loss.
Support and Resistance
(S3) 0.9723 (S2) 0.9738 (S1) 0.9757 (PP) 0.9772 (R1) 0.9791 (R2) 0.9806 (R3) 0.9825
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9750 with Stop Loss 0.9700 and Take Profit 0.9837 are recommended.