USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading in a sideways move developing triangle (4) wave (coloured orange) of the bigger 3 wave (coloured purple). Yesterday during the early European session we could observe a strong descending movement from 0.9913 towards 0.9872 level. Therefore, during the New York session, the USD/CAD pair continued trading in a bearish mood and the price reached 0.9807 level. Today during the Asian session we could observe one more downward move that brings this major to 0.9804 level and we can consider this move as the end of the (1) wave (coloured green) of the bigger (5) wave (coloured orange). In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with Fibonacci retracements (0.9917-0.9804), with Take Profit at 0.9874 (61.8% of wave 1). To reduce the risk, we can use the end of the (1) wave as Stop Loss. Also it is necessary to monitor the CAD Building Permits m/m,Employment Change, Unemployment Rate, Labor Productivity q/q, Ivey PMI, BOC Gov Carney Speaks and U.S. Non-Farm Employment Change, Unemployment Rate, Average Hourly Earnings m/m data that can change the rate of the pair.
Support and Resistance
(S3) 0.9743 (S2) 0.9784 (S1) 0.9809 (PP) 0.9849 (R1) 0.9890 (R2) 0.9915 (R3) 0.9955
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9830 with Stop Loss 0.9804 and Take Profit at 0.9874 are recommended.