FX.co ★ USD/CAD analysis for October 23, 2013

USD/CAD Elliott Wave
Since our last analysis, the USDCAD pair has continued trading lower, corrective wave .b (coloured black) of the bigger wave b has finished developing. Yesterday, during the Asian and European sessions, we could observe a descending movement from 1.0308 towards the 1.0270 level, and we can consider this move as the end of the .b (coloured black). Therefore, during the early New York session, this commodity pair did not manage to hold this level and the price retraced back to the 1.0291 level. At the moment, the USDCAD pair is trading around 1.0315, and we are expecting to see one more push higher for the end of the .c of b wave, that is currently in progress. 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 1.0345 (50% of wave A). To reduce the risk, we can use invalidation point at the 1.0285 level as stop loss.

Support and Resistance
(S3) 1.0230 (S2) 1.0250 (S1) 1.0269 (PP) 1.0289 (R1) 1.0308 (R2) 1.0328 (R3) 1.0347

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 1.0305 with stop loss at 1.0285 and take profit at 1.0345 are recommended.