USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has continued trading upwards, impulsive wave .3 (coloured green) of the bigger wave C (coloured blue) has been developing. Yesterday, during the European session we could observe small descending movement from 1.0499 towards the 1.0469 level. Therefore, during the early New York session this currency did not manage to hold this levels and the price retraced back to the 1.0530 level. At the moment, the USDCAD pair is trading around 1.0455 and we are expecting to see retrace in .4 wave before the price continues to push higher. In accordance with our wave rules and taking into account that wave 4 should retrace 23.6% of wave 3,so we can define the potential targets with measuring wave 3 with take profit at 1.0496 (23.6% of wave 3). To reduce the risk, we can use resistance point at 1.0515 level as stop loss.
Support and Resistance
(S3) 1.0421 (S2) 1.0445 (S1) 1.0481 (PP) 1.0505 (R1) 1.0541 (R2) 1.0565 (R3) 1.0601
Proceeding from Elliott Wave rules today, the trend is expected to begin downward movement. That is why short position at the level of 1.0530 with stop loss at 1.0580 and take profit at 1.0496 are recommended.
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