FX.co ★ USD/CAD analysis for August 21, 2013

USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has been trading upwards, just like we expected, final wave .Y (coloured green) of the bigger 2 wave (coloured blue) has been developing. Yesterday, during the Asian and European session we could observe ascending movement from 1.0344 towards the 1.0376 level. Therefore, during the New York session this commodity currency has continued trading in a bullish mood and price has reached a new sessions high at 1.0400 level.At the moment the USDCAD pair is trading around 1.0415 level and we are expecting to see price lower in the next few sessions.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 1.0150 (161.8% of wave 1). To reduce the risk, we can use invalidation point at 1.0440 level as stop loss.

Support and Resistance
(S3) 1.0287 (S2) 1.0311 (S1) 1.0352 (PP) 1.0376 (R1) 1.0417 (R2) 1.0441 (R3) 1.0482

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short position at level 1.0375 with stop loss at 1.0440 and take profit at 1.0150 are recommended.