FX.co ★ USD/CAD analysis for November 13, 2013

USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has been trading upwards, just like we expected, but we have slightly changed our primary view and we are looking in the move from 1.0396 as DIAGONAL in the (y) wave (coloured green). Yesterday, during the Asian and European sessions we could observe strong ascending movement from 1.0463 towards the 1.0507 level and we can consider this move as the end of the (y) wave. Therefore, during the early New York session this commodity pair did not manage to hold around the highs and price has dropped to 1.0475 level. At the moment the USDCAD pair is trading around 1.0481 and if we see price below 1.0463 level again we are going to have confirmation that wave (y) is over. 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 1.0079 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0600 level as stop loss.

Support and Resistance
(S3) 1.0423 (S2) 1.0443 (S1) 1.0468 (PP) 1.0488 (R1) 1.0513 (R2) 1.0533 (R3) 1.0558

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movements. That is why short position at level 1.0450 with stop loss at 1.0600 and take profit at 1.0079 are recommended.