FX.co ★ USD/CAD analysis for June 10, 2013

USD/CAD Elliott Wave
Last week the USD/CAD pair was trading downwards, impulsive wave [3] (coloured red) of the bigger wave C (coloured green) was developing. During the Friday's Asian and European sessions we could observe strong descending movement from 1.0287 towards the 1.0166 level and we can consider this movement as the end of the impulsive wave [3] (coloured red).Therefore, during the New York session when development of the corrective wave [4] had started this commodity currency pushed higher and the price reached a new sessions high at 1.0232 level. At the moment the USD/CAD pair is trading around 1.0185 area and we expect to see the continuation of the bearish movement in the next few 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 1.0100 (61.8% of wave 3). To reduce the risk, we can use resistance point at 1.0220 level as stop loss.
Support and Resistance
(S3) 1.0027 (S2) 1.0098 (S1) 1.0146 (PP) 1.0217 (R1) 1.0265 (R2) 1.0336 (R3) 1.0384
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0180 with stop loss at 1.0220 and take profit at 1.0100 are recommended.