FX.co ★ USD/CAD analysis for September 03, 2013

USD/CAD Elliott Wave
Last week, the USDCAD pair was trading upwards, corrective wave (c) (coloured blue) of the bigger wave (B) (coloured green) was developing. During the Monday's Asian and European sessions we could observe descending movement from 1.0543 towards the 1.0514 level. Therefore, during the New York session this commodity currency did not manage to hold this levels and the price retraced back to the 1.0557 level. At the moment, the USDCAD pair has been trading around yesterday high and we are expecting to see the price decline when developing of the (B) wave ends. In accordance with our wave rules and taking into account that wave (C) should retrace 100% of wave (A), so we can define the potential targets with measuring wave (A) with take profit at 1.0461 (100% of wave (A)). To reduce the risk, we can use invalidation point at the 1.0565 level as stop loss.

Support and Resistance
(S3) 1.0480 (S2) 1.0498 (S1) 1.0522 (PP) 1.0540 (R1) 1.0564 (R2) 1.0582 (R3) 1.0606

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin a downward movement. That is why short position at the level of 1.0510 with stop loss at 1.0565 and take profit at 1.0461 are recommended.