FX.co ★ USD/CAD analysis for March 20, 2013

USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair was trading upwards just like we expected, impulsive wave 3 (coloured blue) of the bigger wave (5) (coloured green) was developing. Yesterday, during the Asian and European sessions we could observe strong ascending movement from 1.0214 towards the 1.0283 level and we can consider this move as the end of the impulsive sub-wave (3) (coloured pink). Therefore, during the New York session this commodity currency did not manage to hold this level and the price has retraced back to 1.0260 level. At the moment the USD/CAD pair is trading around 1.0247 level and we expect to see the price higher again when development of the (4) wave (coloured pink) ends. 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 1.0227 level as stop loss.

Support and Resistance
(S3) 1.0156 (S2) 1.0185 (S1) 1.0226 (PP) 1.0255 (R1) 1.0296 (R2) 1.0325 (R3) 1.0366

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0260 with stop loss at 1.0227 and take profit at 1.0315 are recommended.