USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading in aт upward move like we expected, corrective wave (2) (coloured green) of the bigger wave (3) (coloured orange) is developing. During the Asian and European sessions we could observe ascending movement from 0.9763 towards the 0.9804 level. Therefore, during the New York session the USD/CAD pair continued trading in a bullish mood and price reached a new daily high at 0.9858 level. At the moment this major pair is trading around 0.9855 level and we are expecting to see price lower when development of the (3) wave (coloured green) starts. 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 measuring wave 1 with Take Profit at 0.9745 (100% of wave 1) and Take Profit 2 at 0.9674 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.9879 level as Stop Loss. Also it is necessary to monitor CAD Core CPI m/m, CPI m/m, and U.S. Existing Home Sales data that can change the rate of the pair.
Support and Resistance
(S3) 0.9730 (S2) 0.9766 (S1) 0.9789 (PP) 0.9825 (R1) 0.9861 (R2) 0.9884 (R3) 0.9920
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9845 with Stop Loss 0.9879, Take Profit 1 at 0.9745, and Take Profit 2 at 0.9674 are recommended.