FX.co ★ USD/CAD analysis for September 11, 2013

USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has continued trading downwards, impulsive wave (5) (coloured green) of the bigger wave 1 (coloured blue) has been developing. Yesterday, during the Asian and European sessions we could observe descending movements from 1.0380 towards the 1.0329 level. We can consider this move as the end of the 1 wave (coloured blue).Therefore, during the New York session this commodity currency did not manage to hold this levels and the price retraced back to the 1.0363 level. At the moment, the USDCAD pair is trading around 1.0356 and we are expecting to see more bullish movements until the wave 2 ends. In accordance with our wave rules and taking into account that wave 2 should retrace 61.8% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0474 (61.8% of wave 1). To reduce the risk, we can use invalidation point at the 1.0365 level as stop loss.

Support and Resistance
(S3) 1.0276, (S2) 1.0303, (S1) 1.0325, (PP) 1.0352, (R1) 1.0374, (R2) 1.0401, (R3) 1.0423.

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin an upward movement. That is why long positions at the level of 1.0380 with stop loss at 1.0365 and take profit at 1.0474 are recommended.