USD/CAD Elliott Wave
The USD/CAD pair was trading in a downward move yesterday developing the corrective wave (2) (coloured green). During the European session we could observe a descending movement toward the 1.0251 level. Therefore during the early New York session this major pair tried to push higher and price reached 1.0295. During the second half of the NY session the USD/CAD pair did not manage to hold at this level and price reached a new daily low at 1.0232 level. We can consider this move as the end of the C wave (coloured blue) of the bigger (2) wave (coloured green). Today when Asian session open the USD/CAD pair started trading in a bullish mood and price is currently testing the 1.0260 level. In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with Fibonacci extensions (1.0160-1.0317-1.0232) with Take Profit 1 at 1.0384 (100% of wave 1) and Take Profit 2 at 1.0478 (161.8% of wave 1). Invalidation point at 1.0232 can be used as a Stop Loss point. Also it is necessary to monitor the U.S. Core Durable Goods Orders m/m, Durable Goods Orders m/m, Pending Home Sales m/m, Crude Oil Inventories data that can change the rate of the pair.

Support and Resistance Levels
(S3) 1.0191 (S2) 1.0216 (S1) 1.0231 (PP) 1.0255 (R1) 1.0280 (R2) 1.0295 (R3) 1.0319

Trading Forecast
Proceeding from Elliott Wave Rules this week, the trend is expected to begin the upward movement. That is why Long positions at level 1.0265 with Stop Loss at 1.0232 Take Profit 1 at 1.0384 and Take Profit 2 at 1.0478 are recommended.