FX.co ★ USD/CAD analysis for May 27, 2013

USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading sideways, corrective wave C (coloured green) of the bigger wave (B) (coloured blue) has been developing. During the Friday's European session we could observe strong ascending movement from 1.0300 towards the 1.0355 level and we can consider this move as the end of the corrective wave B (coloured green) of the bigger wave (B) (coloured blue). Therefore, during the New York session this commodity currency did not manage to hold this levels and the price has retraced back to 1.0310 area. At the moment the USD/CAD pair is trading around 1.0325 level and we expect to see continuation of the bearish mood for the next few sessions. In accordance to our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0248 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0360 level as stop loss.

Support and Resistance
(S3) 1.0235 (S2) 1.0267 (S1) 1.0292 (PP) 1.0324 (R1) 1.0349 (R2) 1.0381 (R3) 1.0406
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0320 with stop loss at 1.0360 and take profit at 1.0248 are recommended.