USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in a downward move like we expected, developing impulsive wave (1) (coloured green) of the bigger (3) wave (coloured orange). Yesterday, during the Asian and European sessions we could observe strong descending movement from 0.9834 towards the 0.9785 level. Therefore, during the New York session the USD/CAD pair continued trading in a bearish mood reaching 0.9762 level. We can consider this move as the end of the wave (1) (coloured green). This currency pair is trading around 0.9785 level at the moment and we are expecting to see price lower soon. 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 Fibonacci Extensions (0.9834 - 0.9762 - 0.9799), with Take Profit at 0.9687 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.9835 level as Stop Loss. Also it is necessary to monitor U.S. PPI m/m, Core PPI m/m, Prelim UoM Consumer Sentiment, FOMC Member Lacker Speaks, and Federal Budget that can change the rate of the pair.

Support and Resistance
(S3) 0.9723 (S2) 0.9751 (S1) 0.9767 (PP) 0.9795 (R1) 0.9823 (R2) 0.9839 (R3) 0.9867
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9766 with Stop Loss 0.9835 and Take Profit at 0.9687 are recommended.