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Market Overview
Yesterday the USD/CAD pair was trading in the downward movement. During the European session the major started descending to the 0.9888 level.Therefore during the New York session we could observe slightly upward movement to the 0.9925 (100 EMA resistance) level before we saw continuation of bearish mood.Today in the Asian session we could observe a strong bullish mood in this major pair to 0.9900 level.Today the USD/CAD pair is expected to test 0.9955 level before we can see this major lower. Also it is necessary to consider the data concerning the USD Fed Chairman Bernanke Speach, Crude Oil Inventories and CAD Capacity Utilization Rate that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9854 (S2) 0.9872 (S1) 0.9883 (PP) 0.9900 (R1) 0.9918 (R2) 0.9929 (R3) 0.9946
USD/CAD Elliott Wave Analysis
USD/CAD has finished 1 wave of the bigger C wave in the point 0.9946, and 2 wave in the point 0.9871.Presently we can observe 3 wave. In accordance with our wave rules and taking into account that the wave 3 will retrace to 138.2 or 161.8% of the wave 1 we can define the potential targets with the help of Fibonacci retracement (0.9872-0.9946-0.9871) with first Take Profit at level 0.9984 (138.2% of the wave 1) and second Take Profit at 1.0002 (161.8% of the wave 1). For Stop Loss we can use 0.9870 support level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long position at levels 0.9900 with Stop Loss at 0.9870, Take Profit at 0.9984 and Take Profit 2 at 1.0002 are recommended.
