USD/CAD Elliott Wave
For the last few weeks, the USD/CAD pair was trading in an upward move, developing corrective wave (Y) (coloured orange) of the bigger wave 4 (coloured purple). Yesterday during the Asian session, we could observe a descending movement from 0.9855 towards the 0.9818, when development of the final 5 wave started. Therefore, during the New York session, the USD/CAD pair continued trading in a bearish mood and the price reached a new daily low at 0.9790 level. At the moment, this major pair is trading around 0.9785 level and we are expecting to see the price around 0.9582 in the next few days. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 0.9582 (100% of wave 1). To reduce the risk, we can use invalidation at 0.9860 level as Stop Loss. Also it is necessary to monitor CAD GDP m/m and U.S. Core PCE Price Index m/m, Personal Spending m/m, Chicago PMI, Revised UoM Consumer Sentiment data that can change the rate of the pair.
Support and Resistance
(S3) 0.9753 (S2) 0.9777 (S1) 0.9793 (PP) 0.9817 (R1) 0.9841 (R2) 0.9857 (R3) 0.9881
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9780 with Stop Loss 0.9860 and Take Profit at 0.9582 are recommended.