USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading upwards. During the Asian session we could observe ascending movement towards the 1.0130 level, where this major pair found resistance and started pushing lower in a European session. During the early New York session USD/CAD found support a few pips above 50EMA, and we could observe an upward move towards 1.0131 (new daily high). Today during the Asian session we could observe slight correction of this currency pair to the 1.0105 level. I expect to see price above 1.0180 for the end of the 3 wave (coloured blue). In accordance with our wave rules and taking into account that the wave 3 retraces 200% of the wave 1, we can define the potential targets with Fibonacci extensions (0.9953-1.0050-0.9990) with Take Profit 1 at 1.0179 (200% of wave 1). The support level at the 1.0105 level can be used as Stop Loss. Also it is necessary to consider the data concerning the U.S. Unemployment Claims, Treasury Sec Geithner Speech, Philly Fed Manufacturing Index and CAD Foreign Securities Purchases, Wholesale Sales m/m, that can affect the rate of the pair.
Support and Resistance levels
(S3) 1.0023 (S2) 1.0053 (S1) 1.0072 (PP) 1.0102 (R1) 1.0132 (R2) 1.0151 (R3) 1.0181
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 1.0140 with Stop Loss at 1.0105 and Take Profit at 1.0180
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