USD/CAD Elliott Wave
For the last few days the USD/CAD pair was trading in an upward move, corrective wave (y) (coloured green) of the bigger wave (2) (coloured orange) is developing. Yesterday, during the European and New York sessions we could observe strong ascending movement from 0.98001 towards the 0.9877 level and we can consider this move as the end of the (2) wave (coloured orange). Therefore, during the second half of the NY and today's Asian session the USD/CAD pair started pushing lower when developing of the impulsive wave (3) starts. We are expecting to see this major currency reaching 0.9730 level in the next few days. 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 0.9730 (100% of wave 1) and Take Profit 2 at 0.9637 (161.8% of wave 1). To reduce the risk, we can use invalidation at 0.9884 level as Stop Loss. Also it is necessary to monitor U.S. Building Permits, Housing Starts, and Crude Oil Inventories data that can change the rate of the pair.
Support and Resistance
(S3) 0.9771 (S2) 0.9801 (S1) 0.9819 (PP) 0.9848 (R1) 0.9878 (R2) 0.9896 (R3) 0.9925
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 0.9850 with Stop Loss 0.9884, Take Profit 1 at 0.9730 and Take Profit 2 at 0.9637 are recommended.