FX.co ★ USD/CAD analysis for May 01, 2013

USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading downwards, impulsive wave (3) (coloured blue) of the bigger wave C (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe sideways move between 1.0112 and 1.0103 area, and we can consider this movement as the end of the triangle wave 4 (coloured green). Therefore, during the early New York session this major currency did not manage to hold this levels and price has retraced to the 1.0054 level . At the moment the USD/CAD pair is trading around 1.0062 area and we are expecting to see price higher when developing of the corrective wave (4) starts.In accordance with our wave rules and taking into account that the wave 4 should retrace 38.2% of the waves 3, we can define the potential targets with measuring wave 3 with take profit at 1.0145 (38.2 % of wave 3). To reduce the risk, we can use support level at 1.0000 as stop loss.
Support and Resistance
(S3) 0.9975 (S2) 1.0014 (S1) 1.0043 (PP) 1.0082 (R1) 1.0111 (R2) 1.0150 (R3) 1.0179
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0070 with stop loss at 1.0000 and take profit at 1.0145 are recommended.