FX.co ★ USD/CAD analysis for August 20, 2013

USD/CAD Elliott Wave
For the last few days the USDCAD pair has been trading upwards, and that is why we must look at the blue wave 2 as incomplete cycle. Yesterday, during the Asian and European session we could observe ascending movement from 1.0315 towards 1.0337 level. Therefore, during the early New York session the USDCAD pair has continued trading in a bullish mood and we could see new sessions high at 1.0347 level. At the moment price is trading around 1.0350 and we should see one more push higher before the 2 wave is complete. In accordance with our wave rules and taking into account that wave Y should retrace 100% of wave W,so we can define the potential targets with measuring wave W with take profit at 1.0384 (100% of wave W). To reduce the risk, we can use invalidation point at 1.0310 level as stop loss.

Alternation: if price continue to push lower and break below 1.0310 we must consider the 1.0384 as the end of the wave 2 (coloured blue).bearish movement for Mid-Term.

Support and Resistance
(S3) 1.0292 (S2) 1.0303 (S1) 1.0324 (PP) 1.0335 (R1) 1.0356 (R2) 1.0367 (R3) 1.0388

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long position at level 1.0360 with stop loss at 1.0310 and take profit at 1.0251 are recommended.