FX.co ★ USD/CAD analysis for April 30, 2013

USD/CAD Elliott Wave
Since our last analysis the USD/CAD pair has continued trading lower, so we changed our primary count a little bit. During the Yesterday's Asian and European sessions we could observe descending movement from 1.0168 towards the 1.0133 level. Therefore, during the New York session this commodity currency has continued trading in bearish mood and the price has reached a new session’s low at 1.0107 level. We can consider this move as the end of the sub-wave 5 (coloured green) of the bigger wave (3) (coloured blue). At the moment the USD/CAD pair is trading around 1.0119 level and we expect to see the price back to 1.0200 level in the next few sessions. In accordance with our wave rules and taking into account that the wave 4 should retrace 50% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.0190 (50 % of wave 3). To reduce the risk, we can use support level at 1.0100 as stop loss.
Support and Resistance
(S3) 1.0026 (S2) 1.0067 (S1) 1.0090 (PP) 1.0131 (R1) 1.0154 (R2) 1.0195 (R3) 1.0218
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0125 with stop loss at 1.0100 and take profit at 1.0190 are recommended.