FX.co ★ USD/CAD analysis for November 8, 2013

USD/CAD Elliott Wave
Since our last analyses, the USDCAD pair has been trading upwards, so we have changed our primary view slightly, from looking at one more push lower for the end of the b wave (coloured blue), we are calling now b wave completed at the 1.0396 level. Yesterday, during the Asian session, we could observe descending movement from 1.0428 towards the 1.0404 level, and we can consider this move as the end of the 2 wave (coloured black). Therefore, during the European and New York sessions, when developing of the wave .3 (coloured black) started this currency pair did not manage to hold the lows, and the price retraced back to the 1.0462 level. At the moment, the USDCAD pair is trading around 1.0452 and we are expecting to see more bullish movements in the next couple of sessions. 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 1.0623 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0400 level as stop loss.

Support and Resistance
(S3) 1.0363 (S2) 1.0384 (S1) 1.0420 (PP) 1.0441 (R1) 1.0477 (R2) 1.0498 (R3) 1.0534

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 1.0430 with stop loss at 1.0400 and take profit at 1.0623 are recommended.