FX.co ★ USD/CAD analysis for April 02, 2013

USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair was trading downwards, impulsive wave 1 (coloured blue) of the bigger wave (5) (coloured green) was developing. During the Monday's Asian and European sessions we could observe ascending movement from 1.0165 towards the 1.0182 level and we can consider this movement as the end of the sub-wave (1) of the 1 wave (coloured blue). Therefore, during the New York session this major currency did not manage to hold this level and the price dropped to 1.0150 level. At the moment the USD/CAD pair is trading around 1.0145 level and we expect to see the continuation of the bullish movement. 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 1.0425 (100% of wave 1). To reduce the risk, we can use invalidation at 1.0100 level as stop loss.

Support and Resistance
(S3) 1.0118 (S2) 1.0134 (S1) 1.0145 (PP) 1.0162 (R1) 1.0178 (R2) 1.0189 (R3) 1.0206

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0200 with stop loss at 1.0100 and take profit at 1.0425 are recommended.