FX.co ★ USD/CAD analysis for March 19, 2013

USD/CAD Elliott Wave
From our last analysis the primary bullish scenario for the USD/CAD pair is the same, but today we are going to take a potential targets for short-term traders. Yesterday, during the Asian session we could observe ascending movement towards 1.0249 level and we can consider this move as the end of the impulsive wave 1 (coloured blue). Therefore, during the European and New York sessions this major currency did not manage to hold higher and the price has dropped to the 1.0203 area. We can consider this movement as the end of the wave 2 (coloured blue). At the moment the USD/CAD pair is trading around 1.0228 level and we expect to see the price above 1.0300 very soon. In accordance with our wave rules and taking into account that the wave 3 should retrace 161.8% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0315 (161.8% of wave 1). To reduce the risk, we can use support at 1.0200 level as stop loss.

Support and Resistance
(S3) 1.0149 (S2) 1.0176 (S1) 1.0196 (PP) 1.0223 (R1) 1.0243 (R2) 1.0270 (R3) 1.0290

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0235 with stop loss at 1.0200 and take profit at 1.0315 are recommended.