USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in a downward move like we expected, developing impulsive wave (1) (coloured green) of the bigger wave (3) (coloured orange).Yesterday during the Asian and European sessions we could observe descending movement from 0.9853 towards the 0.9812 level. Therefore, during the first half of the New York session the USD/CAD pair continued trading in a bearish mood and price reached 0.9797 level. We can consider this move as the end of the impulsive wave (1) (coloured green). This major pair is trading around 0.9820 level at the moment and today we are expecting to see price lower. 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 Fibonacci Extensions (0.9853-0.9797-0.9842), with Take Profit at 0.9751 (161.8% of wave 1). To reduce the risk, we can use resistance at 0.9840 level as Stop Loss.
Support and Resistance
(S3) 0.9769 (S2) 0.9791 (S1) 0.9804 (PP) 0.9825 (R1) 0.9847 (R2) 0.9860 (R3) 0.9881
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9815 with Stop Loss 0.9840 and Take Profit at 0.9751 are recommended.