USD/CAD Elliott Wave
Yesterday we preformed short term analysis for the USD/CAD pair and today we want to examine a larger time frame for swing traders. Yesterday during the Asian and European sessions we could observe a descending movement towards the 1.0065 level. Therefore, during the New York session the USD/CAD pair did not manage to hold this level and the price started trading in a sideways move. At the moment price is still trading in a sideways move and we are expecting to see the last push to the downside today. In accordance with our wave rules and taking into account that the wave 3 retraces minimum 100% of the wave 1, we can define the potential targets with Fibonacci extensions (0.9800-1.0445-1.0050) wave with Take Profit 1 at 1.0660(100% of wave 1) and Take Profit 2 at 1.1057(161.8% of wave 1). Invalidation at 0.9800 point can be used as Stop Loss. Also it is necessary to monitor the CAD Core CPI m/m and CPI m/m data that can change the rate of the pair.
Support and Resistance
(S3) 1.0039 (S2) 1.0055 (S1) 1.0065 (PP) 1.0081 (R1) 1.0097 (R2) 1.0107 (R3) 1.0123
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 1.0050 with Stop Loss 0.9800 Take Profit 1 at 1.0660 and Take Profit 2 at 1.1057 are recommended.