USD/CAD Ready To Test 1.0000 Level

Technical View

From the start of the December the USD/CAD pair was trading in a sideways movement and today we want to see where this major pair can move next. When we look at the 4 hours chart, we can clearly count 5 impulsive wave in the  corrective (A) wave (coloured green) and we can see 2 finished waves in the (B) wave (coloured green).  We are currently at the end of the smaller B wave (coloured blue) that look like triangle in our view .We are expecting  to see bullish movement in the USD/CAD when developing of the final corrective C wave (coloured blue) of the bigger (B) wave (coloured green) start.

We now know that next possible movement can be bullish but we also need to know exactly how much higher the USD/CAD pair can go?  According to Elliott Theory  B wave usually retraces between 50 and 61.8% of the wave A, so we can project possible targets with a help of Fibonacci Retracement ( 1.0057 – 0.9906 ) and we obtain the next possible targets at levels of 0.9981 (50% of BvsA) and 0.9999 (61.8% of BvsA)  . If the price continued trading in a bearish mood and broke level of 0.9870 then our count will be invalid, so this is a good Stop level.

Fundamental View

Today important news coming from United States and Canada :

– Unemployment Claims from U.S.
– Building Permits m/m from Canada
– Ivey PMI from Canada

This news can impact strongly to our wave count and change our count completely.

Support and Resistance
(S3) 0.9890 (S2) 0.9902 (S1) 0.9910 (PP) 0.9923 (R1) 0.9935 (R2) 0.9943 (R3) 0.9956

Final Conclusion About USD/CAD
The USD/CAD pair is at the end of corrective (b) wave (coloured blue) of the bigger (B) wave (coloured green) and we are expecting to see the price rise today when development of the C wave (coloured blue) begins. Potential Targets can be set at 0.9981 (50% of BvsA) and 0.9999 (61.8% of BvsA) , for invalidation we can use support  at a level of 0.9870  .

-ND-