USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading in an upward move, developing corrective wave (y) (coloured green) of the bigger wave (y) (coloured orange). Yesterday, during the Asian and European sessions we could observe descending movement from 0.9876 toward the 0.9852 level. Therefore, during the early New York session the USD/CAD pair continued trading in a bearish mood reaching a 0.9800 level and we can consider this move as the end of the impulsive wave (1) (coloured green). This major pair is trading around 0.9805 level at the moment and we are expecting to see price higher when developing of the corrective wave (2) starts. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with Fibonacci retracement (0.9883-0.9800), with Take Profit at 0.9852 (61.8% of wave 1). To reduce the risk, we can use invalidation at 0.9780 level as Stop Loss. Also it is necessary to monitor CAD Building Permits m/m, Employment Change, Unemployment Rate and U.S. Non-Farm Employment Change, Unemployment Rate, and Average Hourly Earnings m/m data that can change the rate of the pair.
Support and Resistance
(S3) 0.9750 (S2) 0.9779 (S1) 0.9797 (PP) 0.9827 (R1) 0.9856 (R2) 0.9874 (R3) 0.9904
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9810 with Stop Loss 0.9790 and Take Profit at 0.9852 are recommended.