FX.co ★ USD/CAD analysis for April 10, 2013

USD/CAD Elliott Wave
For the last two days the USD/CAD pair was trading downwards, corrective wave 2 (coloured blue) of the bigger wave (5) (coloured green) was developing. Yesterday, during the European session we could observe strong descending movement from 1.0174 towards the 1.0134 level and we can consider this movement as the end of the corrective wave 2 (coloured blue). Therefore, during the early New York session this major currency did not manage to hold this level and the price has retraced back to 1.0165 area. Today the USD/CAD pair is trading around 1.0147 area and we expect to see the price higher in the next few days. 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 1.0405 (100% of wave 1). To reduce the risk, we can use invalidation point at 1.0134 level as stop loss.

Support and Resistance
(S3) 1.0115 (S2) 1.0131 (S1) 1.0141 (PP) 1.0157 (R1) 1.0173 (R2) 1.0183 (R3) 1.0199

Trading forecast

Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0155 with stop loss at 1.0134 and take profit at 1.0405 are recommended.