USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair was trading in a downward move like we expected, impulsive wave (1) (coloured green) of the bigger wave (3) (coloured orange) is developing. Yesterday, during the Asian and European sessions we could observe descending movement from 0.9870 towards the 0.9837 level. Therefore, during the New York session the USD/CAD pair continued trading in a bearish mood and price reached a new 2 days low at 0.9772 level. Today this currency pair finishes development of the 1 impulsive wave (coloured green) at 0.9763 level and we are expecting to see price around 0.9820 level soon. In accordance with our wave rules and taking into account that the wave 2 should retrace 61.8% of the wave 1, we can define the potential targets with measuring wave 1, with Take Profit at 0.9821 (50% of wave 1) and Take Profit 2 at 0.9835 (61.8% of wave 1). To reduce the risk, we can use support at 0.9744 level as Stop Loss. Also it is necessary to monitor U.S. Unemployment Claims, Philly Fed Manufacturing Index, and CAD Wholesale Sales m/m data that can change the rate of the pair.
Support and Resistance
(S3) 0.9709 (S2) 0.9746 (S1) 0.9770 (PP) 0.9808 (R1) 0.9845 (R2) 0.9869 (R3) 0.9907
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9790 with Stop Loss 0.9744, Take Profit 1 at 0.9821 and Take Profit 2 at 0.9835 are recommended.