USD/CAD Elliott Wave
Since our last analysis, the USD/CAD pair was trading in an upward move like we expected, developing corrective wave (C) (coloured green) of the bigger wave (2) (coloured orange). Yesterday, during the Asian and European sessions we could observe ascending movement from 0.9745 towards the 0.9770 level. Therefore, during the New York session this major pair continued trading in a bullish mood and price reached 0.9807 level. We can consider this move as the end of the wave (2) (coloured orange). The USD/CAD pair is trading around 0.9790 level at the moment and we are expecting to see price around 0.9565 level 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 measuring wave 1, with Take Profit at 0.9658 (100% of wave 1) and Take Profit 2 at 0.9566 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.9808 level as Stop Loss. Also it is necessary to monitor U.S. FOMC Member Yellen Speaks, 10 Year Bond Auction, Beige Book data that can change the rate of the pair.
Support and Resistance
(S3) 0.9714 (S2) 0.9738 (S1) 0.9753 (PP) 0.9777 (R1) 0.9801 (R2) 0.9816 (R3) 0.9840
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9775 with Stop Loss 0.9808, Take Profit at 0.9658, and Take Profit 2 at 0.9566 are recommended.