FX.co ★ USD/CAD analysis for June 07, 2013

USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading downwards, corrective wave C (coloured green) of the bigger wave (4) (coloured blue) has finished developing. Yesterday, during the Asian and European sessions we could observe descending movement from 1.0366 towards the 1.0307 level. Therefore, during the early New York session this commodity currency has continued to trade in a bearish mood and the price has reached a new low at 1.0200 level. We can consider this move as the end of the wave (4) (coloured blue). At the moment the USD/CAD pair is trading around 1.0262 level and we expect to see the price higher in the next few trading sessions. 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 1.0406 (61.8% of wave 3). To reduce the risk, we can use invalidation point at 1.0200 level as stop loss.
Support and Resistance
(S3) 1.0021 (S2) 1.0110 (S1) 1.0187 (PP) 1.0187 (R1) 1.0353 (R2) 1.0442 (R3) 1.0519
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0300 with stop loss at 1.0200 and take profit at 1.0406 are recommended.