FX.co ★ USD/CAD analysis for May 22, 2013

USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading upwards, just like we expected, final wave 5 (coloured green) of the bigger wave (A) (coloured red) has started to develop. Yesterday, during the Asian and New York sessions we could observe ascending movement from 1.0233 towards the 1.0320 level. Therefore, during the New York session this commodity currency did not manage to hold this level and the price has retraced back to 1.0246 level. At the moment the USD/CAD pair is trading around 1.0289 and we expect to see the price reaching our target levels from last forecast. In accordance with our wave rules and taking into account that wave 5 should retrace 61.8% of wave 3, we can define the potential targets with measuring wave 3 with take profit at 1.0355 (61.8% of wave 3). To reduce the risk, we can use support point at 1.0245 level as stop loss.
Support and Resistance
(S3) 1.0141 (S2) 1.0188 (S1) 1.0227 (PP) 1.0274 (R1) 1.0313 (R2) 1.0360 (R3) 1.0399
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0290 with stop loss at 1.0245 and take profit at 1.0355 are recommended.