FX.co ★ USD/CAD analysis for August 15, 2013

USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has been trading downwards, impulsive wave .3 (coloured green) of the bigger wave 3 (coloured blue) has been developing. Yesterday, during the Asian session we could observe ascending movement from 1.0340 towards the 1.0369 level and we can consider this move as the end of the 2 wave (coloured blue). Therefore, during the European and New York session this commodity currency did not manage to gold this levels and price has dropped to the new low at 1.0318 level (end of .1 wave).At the moment the USDCAD is trading around 1.0300 level and we are expecting to see continuation of the bearish movements for the next few days.In accordance with our wave rules and taking into account that wave 3 should retrace 161.8% of wave 1,so we can define the potential targets with measuring wave 1 with take profit at 1.0256 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0340 level as stop loss.

Support and Resistance
(S3) 1.0262 (S2) 1.0289 (S1) 1.0314 (PP) 1.0341 (R1) 1.0366 (R2) 1.0393 (R3) 1.0418

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short position at level 1.0290 with stop loss at 1.0340 and take profit at 1.0256 are recommended.