Price action in the USD/CAD has been clearly confined to within an Elliott Channel so far. As you can see wave 2 has retraced more than 61.8% of wave 1, so it is likely that the wave 4 retracement will be very shallow. I am not expecting price to reach the 38.2% retracement line, as it will likely be turned around by the Elliott Channel resistance if it even makes it to that level. If price manages to touch on the lower channel line, this would be the ideal place to get long, however if you aren't able to sit at your computer and watch every minute, 1.0520 would be a good place to put your buy order. Keep stops at 1.0440.
If wave 5 is equal to wave 1 than the price target should be about 1.0585, however it is possible that wave 5 will extend. The US Dollar has been strongest against the Canadian Dollar compared to all the other majors over the last few sessions, and this may continue into the coming session.
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