FX.co ★ USD/CAD analysis for March 28, 2013

USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair was trading side-ways, corrective wave Y (coloured blue) of the bigger wave (4) (coloured green) has finished its development. Yesterday, during the Asian session we could observe ascending movement from 1.0160 towards 1.0195 level. Therefore, during the European session this currency did not manage to hold this level and the price has retraced back to 1.0147 area. We can consider this movement as the end of the wave (4) (coloured green). At the moment the USD/CAD pair is trading around 1.0162 area and we expect to see the price pushing above 1.0430 level very soon. In accordance with our wave rules and taking into account that the wave 5 should retrace 100% of the waves 1, we can define the potential targets with measuring wave 1 with take profit at 1.0432 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0099 level as stop loss.

Support and Resistance
(S3) 1.0123 (S2) 1.0140 (S1) 1.0151 (PP) 1.0168 (R1) 1.0185 (R2) 1.0196 (R3) 1.0213

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0175 with stop loss at 1.0099 and take profit at 1.0432 are recommended.