FX.co ★ USD/CAD analysis for September 16, 2013

USD/CAD Elliott Wave
For the last few days, the USDCAD pair was trading slightly upwards, corrective wave 4 (coloured green) of the bigger wave (1) (coloured blue) was developing. During the Friday's Asian and European sessions we could observe this major trading inside the sideways channel between 1.0324 and 1.0345 levels. Therefore, during the New York session the USDCAD pair did not manage to hold this levels and the price reached a new daily high at the 1.0353 level. We can consider this move as the end of the wave 4 (coloured green). At the moment, the USDCAD pair is trading around 1.0290 and we are expecting to see the price moving higher when developing of the 5 (green) of (1) wave (coloured blue) ends. In accordance with our wave rules and taking into account that wave 2 should retrace 50% of wave 1, we can define potential targets with measuring wave 1 with take profit at 1.0415 (50% of wave 4). To reduce the risk, we can use the invalidation point at the 1.0200 level as stop loss.

Support and Resistance
(S3) 1.0297 (S2) 1.0309 (S1) 1.0331 (PP) 1.0343 (R1) 1.0365 (R2) 1.0377 (R3) 1.0399

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin upward movements. That is why long positions at the level of 1.0320 with stop loss at 1.0200 and take profit at 1.0415 are recommended.