FX.co ★ USD/CAD analysis for September 25, 2013

USD/CAD Elliott Wave
Since our last analysis the USDCAD pair has been trading upwards, corrective wave b (coloured blue) of the bigger wave (b) (coloured green) has been developing. Yesterday, during the Asian and European sessions we could observe ascending movement from 1.0273 towards the 1.0304 level. Therefore, during the early New York session the USDCAD pair made a new low at 1.0268 (alt B wave) before the price continued to trade in a bullish mood. At the moment this commodity pair is trading around 1.0305 and we are expecting to see one more push lower before price turn higher in a final (c) of [b] wave. In accordance with our wave rules and taking into account that wave B should retrace 50% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0375 (50% of wave A). To reduce the risk, we can use invalidation point at 1.0200 level as stop loss.

Support and Resistance
(S3) 1.0233 (S2) 1.0251 (S1) 1.0275 (PP) 1.0293 (R1) 1.0317 (R2) 1.0335 (R3) 1.0359

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 1.0245 with stop loss at 1.0200 and take profit at 1.0375 are recommended.