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USD/CAD analysis for July 03, 2013

Posted at July 3, 2013 Categories : Forex Analysis |

USD/CAD Elliott Wave
For the last few days the USD/CAD pair has been trading upwards, impulsive wave 5 (coloured blue) of the bigger wave [1] (coloured red) has finished developing. Yesterday, during the Asian and European session we could observe ascending movement from 1.0500 towards the 1.0577 level and we can consider this move as the end of the impulsive wave [1] (coloured red). Therefore, during the New York session this major currency did not manage to hold this levels and price has retraced back to 1.0528 level. At the moment, the USD/CAD pair is trading around 1.0550 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 2  should retrace 50% of wave 1, we can define the potential targets with measuring wave 1 with take profit at 1.0355 (50% of wave 1). To reduce the risk, we can use invalidation point at 1.0600 level as stop loss. 

Alternatively: If the price brakes above 1.0600 level, we need to consider that wave [1] (coloured red) is not over yet, in this scenario we can consider yesterday’s target at 1.0662 as possible end of the wave [1].

Support and resistance
(S3) 1.0450 (S2) 1.0483 (S1) 1.0503 (PP) 1.0537 (R1) 1.0570 (R2) 1.0590  (R3) 1.0624

Trading forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the downwards movement. That is why short positions at level 1.0500 with stop loss at 1.0600 and take at 1.0355 are recommended.  

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