FX.co ★ USD/CAD analysis for May 31, 2013

USD/CAD Elliott Wave
Since our last analyses the USD/CAD pair has been trading downwards, corrective wave (A) (coloured red) of the bigger wave B (coloured purple) has been developing. Yesterday, during the European session we could observe ascending movement from 1.0329 towards the 1.0387 level and we can consider this move as the end of the corrective wave (B) (coloured green) of the bigger wave (A) (coloured red). Therefore, during the New York session this major currency did not manage to hold this levels and the price has dropped to the new 4-day low at 1.2096 level. We can consider this move as the end of the final (C) wave (coloured green) of the (A) wave (coloured red). At the moment the USD/CAD pair is trading around 1.0350 area and we expect to see the price higher for the end of the (B) wave (coloured red). In accordance with our wave rules and taking into account that wave B should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0420 (100% of wave A). To reduce the risk, we can use support point at 1.0300 level as stop loss.
Support and Resistance
(S3) 1.0172 (S2) 1.0234 (S1) 1.0264 (PP) 1.0326 (R1) 1.0356 (R2) 1.0418 (R3) 1.0448
Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movement. That is why long positions at level 1.0330 with stop loss at 1.0300 and take profit at 1.0420 are recommended.