USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in a downward move, developing extended 5 wave (coloured blue) of the bigger wave (1) (coloured green). During the Friday's Asian session we could observe a descending movement from 0.0935 towards the 0.9804 level and we can consider this move as the end of the wave 1 of the bigger wave 5 (coloured blue). Therefore, during the early European session the USD/CAD pair did not manage to hold this level and the price retraced back to 0.9827 level (end of the 2 wave). At the moment price is trading around 0.9780 level and we are expecting to see it higher when developing  the (2) wave (coloured green) starts. 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 (0.9917-0.9755), with Take Profit at 0.9852 (61.8% of wave 1). To reduce the risk, we can use support 0.9750 as Stop Loss. Also it is necessary to monitor the U.S Consumer Credit m/m data that can change the rate of the pair.
Support and Resistance
(S3) 0.9725 (S2) 0.9752 (S1) 0.9768 (PP) 0.9794 (R1) 0.9821 (R2) 0.9837 (R3) 0.9863
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin its upward movement. That is why long positions at level 0.9775 with Stop Loss 0.9750 and Take Profit at 0.9852 are recommended.