FX.co ★ USD/CAD analysis for November 12, 2013

USD/CAD Elliott Wave
Last week the USDCAD pair has been trading upwards, impulsive wave (.i) (coloured blue) of the impulsive wave .iii (coloured black) has been developing. Yesterday, during the Asian and New York sessions we could observe descending movements from 1.0484 towards the 1.0464 level. Therefore, during the early New York session this commodity currency did not manage to hold around the lows and the price has retraced back to 1.0483 level. At the moment the USDCAD pair is trading around 1.0450 and we are looking for more upwards movements in the next 24h. 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 1.0623 (100% of wave A). To reduce the risk, we can use invalidation point at 1.0420 level as stop loss.

Support and Resistance
(S3) 1.0442 (S2) 1.0453 (S1) 1.0463 (PP) 1.0474 (R1) 1.0484 (R2) 1.0495 (R3) 1.0505

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upwards movements. That is why long position at level 1.0500 with stop loss at 1.0420 and take profit at 1.0623 are recommended.