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Market Overview
Yesterday the USD/CAD pair was trading in downward movement. During the European session this major pair started pushing in bearish mood to the support level 0.9940. USD/CAD did not manage to hold this level, therefore during the New York session the pair started pushing higher to resistance level 0.9985 (100EMA).Today we can observe continuation of the bearish mood as price is lower then 0.9920 level.Today the USD/CAD pair is expected to go higher. Also it is necessary to consider the data concerning the EUR 3-y LTRO, USD Prelim GDP q/q,Chicago PMI,Fed Chairman Bernanke Testifie and Crude Oil Inventories that could affect the rate of the pair.
Support and Resistance levels
(S3) 0.9909 (S2) 0.9929 (S1) 0.9942 (PP) 0.9962 (R1) 0.9982 (R2) 0.9995 (R3) 1.0015
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 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 0.9950.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. Therefore, Short position at levels 0.9900 with Stop Loss in the point 0.9950 Take Profit 1 at 0.9865 and Take Profit 2 at level 0.9815 are recommended.
