USD/CAD Elliott Wave
Last week the USD/CAD pair was trading in a downward move developing corrective wave (2) (coloured green) of the bigger wave (3) (coloured orange). During the Friday's Asian and European sessions we could observe a descending movement towards the 1.0150 level (4 days low). Therefore, during the early New York session, we could observe continuation of the bearish mood and the price reached 1.0129 level. We can consider this move as the end of the wave (2) (coloured green). At the moment the USD/CAD pair is trading around 1.0155 level and we are expecting to see the price higher this week. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.0100-1.0249-1.0129) with Take Profit 1 at 1.0279 (100% of wave 1) and Take Profit 2 at 1.0370 (161.8% of wave 1). Invalidation at 1.0100 point can be used as Stop Loss point. Also it is necessary to monitor the CAD Foreign Securities Purchases and U.S. Core Retail Sales m/m, Retail Sales m/m, Empire State Manufacturing Index, Business Inventories m/m data that can change the rate of the pair.
Support and Resistance
(S3) 1.0084 (S2) 1.0112 (S1) 1.0130 (PP) 1.0158 (R1) 1.0186 (R2) 1.0204 (R3) 1.0232
Trading Forecast
Proceeding from Elliott Wave rules this week, the trend is expected to begin the upward movement. That is why long positions at level 1.0160 with Stop Loss 1.0100, Take Profit 1 at 1.0279 and Take Profit 2 at 1.0370 are recommended.