FX.co ★ USD/CAD Elliott Wave Count for February 28, 2012

Market Overview
Yesterday the USD/CAD pair was trading in downward movement. During the European session this major pair started pushing in bullish mood to the resistance level 1.0050. The USD/CAD pair did not manage to hold this level, therefore during the New York session the pair started pushing lower to new daily low 0.9976 (few pips blow 200EMA support). Today we can observe continuation of the bearish mood as the price is lower than the 0.9945 level. Today the pair is expected to test the resistance level 0.9965 before the resumption of the downside movement.

Support and Resistance levels
(S3) 0.9931 (S2) 0.9959 (S1) 0.9976 (PP) 1.0004 (R1) 1.0032 (R2) 1.0049 (R3) 1.0077

USD/CAD Elliott Wave Analysis
The USD/CAD pair finished corrective (C) wave of the bigger wave (2) at 1.0049, Presently we can observer beginning of wave (3). In accordance with our wave rules and taking into account that the wave (3) is the longest, we can define the potential targets with help of Fibonacci extension (1.0050-0.99060-1.0049) with first Take Profit at level 0.9865(127.2% of wave (1)) and second Take Profit at 0.9815 (161.8% of wave (1)). For Stop Loss we can use the resistance level 1.0000

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. Therefore, Short position at levels 0.9930 with Stop Loss in the point 1.0000, Take Profit 1 at 0.9865 and Take Profit 2 at level 0.9815 are recommended.