USD/CAD Elliott Wave Analysis

Yesterday the USD/CAD pair was trading within the downward move. During the European session we could observe strong descending move toward to 200EMA support. Therefore during the New York session this major continue pushing in a bearish mood and we can see price at 0.9940 level. We can consider this move as the end of wave 3 (coloured blue).Today during the Asian session we could observe a pullback to 0.9960 level, and we are expecting to see price at 0.9980 today. Presently we are in corrective 4 wave (coloured blue). In accordance with our wave rules and taking into account that the wave 4 will be equal as wave 2, we can define the potential targets; the First Take Profit at 0.9969(78.6% of wave 2) and Second Take Profit at 0.9978 (100% of wave 2). For Stop Loss we can use the 0.9940 resistance level. Also it is necessary to consider the data concerning the CAD Trade Balance, NHPI m/m and USD PPI m/m, Trade Balance, Unemployment Claims, Core PPI m/m, FOMC Member Lockhart Speaks that can affect the rate of the pair.

Support and Resistance levels
(S3) 0.9874 (S2) 0.9913 (S1) 0.9936 (PP) 0.9974 (R1) 1.0013 (R2) 1.0036 (R3) 1.0074

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short position at levels 0.9950 with Stop Loss at 0.9940,Take Profit 1 at 0.9969 and Take Profit 2 at 0.9978 are recommended.