USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading in an upward move from 1.0065 level developing impulsive wave 1 (coloured blue) of the bigger wave (1) (coloured green). Yesterday, during the European and early New York sessions, we could observe a descending movement towards the 1.0156 level. Therefore, during the second half of the NY session, the USD/CAD pair failed to hold this level and the price reached 1.0226 level. Today, during the early Asian session, this major pair finished developing of the impulsive wave 1 (coloured blue) at 1.0230 level and we are expecting to see the price trading in bearish mood for the next few days. 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 (1.0065-1.0230) with Take Profit at 1.0128 (61.8% of wave 1). End of the wave 1 at 1.0230 level can be used as Stop Loss. Also it is necessary to monitor the U.S. New Home Sales, Treasury Sec Geithner Speaks, Crude Oil Inventories data that can change the rate of the pair.
Support and Resistance
(S3) 1.0107 (S2) 1.0132 (S1) 1.0176 (PP) 1.0201 (R1) 1.0245 (R2) 1.0270 (R3) 1.0314
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0200 with Stop Loss 1.0230 and Take Profit at 1.0128 are recommended.