AUD/CAD Elliott Wave
For the last few days the AUD/CAD pair was trading in a downward move, developing corrective C wave (coloured blue) of the bigger wave (2) (coloured green). Yesterday during the European session, we could observe an ascending movement from 1.0190 towards the 1.0229 level. Therefore, during the early New York session the AUD/CAD did not manage to hold this level and price started pushing lower reaching a new daily low at 1.0175 level. At the moment, this currency pair is trading around 1.0160 level and we are expecting to see price around 1.0100 level soon. In accordance with our wave rules and taking into account that the wave 2 should retrace 78.6% of the wave 1, we can define the potential targets with Fibonacci Retracement (1.0050-1.0268), with Take Profit 1 at 1.0100 (78.6% of wave 1). To reduce the risk, we can use resistance at 1.0185 level as Stop Loss.
Support and Resistance
(S3) 1.0145 (S2) 1.0166 (S1) 1.0179 (PP) 1.0200 (R1) 1.0221 (R2) 1.0234 (R3) 1.0255
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movement. That is why short positions at level 1.0150 with Stop Loss 1.0185 and Take Profit at 1.0100 are recommended.