FX.co ★ USD/CAD analysis for September 20, 2013

USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has been trading upwards, just like we expected, corrective wave .A (coloured black) of the bigger wave A (coloured green) has been developing. Yesterday, during the Asian session we could observe descending movements from 1.0225 towards the 1.0181 level and we can consider this move as the end of the wave 1 (coloured blue).Therefore, during the European and New York session this commodity currency did not manage to stay at the lows and price has reached a new high at 1.0287 level. At the moment the USDCAD pair is trading around 1.0275 and we are expecting to see one more push higher today when developing of the .B wave (coloured black) ends. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0338 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0180 level as stop loss.

Support and Resistance
(S3) 1.0123 (S2) 1.0152 (S1) 1.0208 (PP) 1.0237 (R1) 1.0293 (R2) 1.0322 (R3) 1.0378

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 1.0235 with stop loss at 1.0180 and take profit at 1.0338 are recommended.