FX.co ★ USD/CAD analysis for October 17, 2013

USD/CAD Elliott Wave
Since our last analyses, the USDCAD pair has been trading downwards, that is why we need to adjust our primary count a little bit. During the Wednesday's Asian and European sessions, we could observe a strong descending movement from 1.0383 towards the 1.0350 level. Therefore, during the New York session this commodity instrument extended decline and the price reached a new low at the 1.0324 level. At the moment, the USDCAD pair is trading around the 1.0320 level, and we are expecting to see push higher today at least to 50% of the cycle from the 1.0418 level. In accordance with our wave rules and taking into account that wave C should retrace 123.6% of wave A, we can define the potential targets with measuring wave A with take profit at 1.0470 (123.6% of wave A). To reduce the risk, we can use invalidation point at the 1.0290 level as stop loss.

Support and Resistance
(S3) 1.0247, (S2) 1.0286, (S1) 1.0306, (PP) 1.0345, (R1) 1.0365, (R2) 1.0404, (R3) 1.0424.

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movements. That is why long positions at the level of 1.0350 with stop loss at 1.0290 and take profit at 1.0470 are recommended.