FX.co ★ USD/CAD analysis for June 21, 2013

USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, impulsive wave 3 (coloured blue) of the bigger wave [1] (coloured red) has been developing. Yesterday, during the Asian and European sessions we could observe strong ascending movement from 1.0261 towards the 1.0330 level. Therefore, during the New York session this commodity currency has continued trading in a bullish mood and the price has reached a new high at 1.0392 level. We can consider this movement as the end of the sub-wave 3 of the 3 wave (coloured blue). At the moment the USD/CAD pair is trading in a sideways move, and we are expecting to see price higher when developing of the corrective wave 4 ends. 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 1.0432 (61.8% of wave 3). To reduce the risk, we can use support point at 1.0260 level as stop loss.
Support and Resistance
(S3) 1.0173 (S2) 1.0220 (S1) 1.0299 (PP) 1.0346 (R1) 1.0425 (R2) 1.0472 (R3) 1.0551
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0330 with stop loss at 1.0260 and take profit at 1.0432 are recommended.