USD/CAD Elliott Wave

Last week the USD/CAD pair was trading in a downward channel developing corrective (2) wave (coloured green). During the Friday's Asian and European sessions we could observe ascending movement toward the 1.0353 level. We can consider this move as the end of (B) wave (coloured green). Therefore during the NY session the USD/CAD pair did not manage to hold this level and price started pushing lower reaching a new daily low at the 1.0260 level. Today during the Asian session we could observe continuation of the bearish mood and price reached the 1.0200 level. At the moment we are at the start of the (1) wave (coloured green) and we are expecting to see price above 1.0500 soon. In accordance with our wave rules and taking into account that the wave 1 to push the USD/CAD pair to the 1.0500 level, we can put Take Profit 1 at 1.0300 and Take Profit 2 at 1.0350. Invalidation point at 1.0200 can be used as Stop Loss point. Also it is necessary to monitor the U.S. FOMC Member Lockhart Speech data that can change the rate of the pair.
Alternation: The USD/CAD pair is still in the corrective (2) wave (coloured green) and we can expect continuation of the bearish mood to the 1.0122 level (50% retrace of wave 1).

Support and Resistance Levels
(S3) 1.0202 (S2) 1.0238 (S1) 1.0260 (PP) 1.0295 (R1) 1.0331 (R2) 1.0353 (R3) 1.0388

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 1.0240 with Stop Loss at 1.0200 Take Profit 1 at 1.0300 and Take Profit 2 at 1.0350 are recommended.