logo

FX.co ★ USD/CAD analysis for October 03, 2013

USD/CAD analysis for October 03, 2013

USD/CAD analysis for October 03, 2013

USD/CAD Elliott Wave
Since our last analyses the USDCAD pair has been trading downwards, just like we expected, corrective wave (i) (coloured green) of the bigger wave [c] (coloured black) has started developing. Yesterday, during the early Asian session we could observe an ascending movement from 1.0335 towards the 1.0355 level. We can consider this move as the end of the wave [b] (coloured black). Therefore, during the European and New York sessions the USDCAD pair did not manage to hold this levels and the price dropped to the 1.0322 level. At the moment, the USDCAD pair is trading around 1.03246 and we are expecting to see more downward movements within the next few days. In accordance with our wave rules and taking into account that wave C should retrace 100% of wave A, we can define the potential targets with measuring wave A with take profit at 0.9990 (100% of wave A). To reduce the risk, we can use invalidation point at the 1.0550 level as stop loss.

Alternate: Wave [b] is still developing, and we should see the price at 1.0400 before it turns lower in the [c] wave (coloured black), but in any case we should see bearish movement within the next couple of sessions.

Support and Resistance
(S3) 1.0285 (S2) 1.0304 (S1) 1.0319 (PP) 1.0338 (R1) 1.0353 (R2) 1.0372 (R3) 1.0387

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downward movements. That is why short positions at the level of 1.0335 with stop loss at 1.0550 and take profit at 0.9990 are recommended.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
Go to the articles list Open trading account