FX.co ★ USD/CAD Elliott Wave Count for March 19, 2012

Market Overview
On Friday during the European session the USD/CAD pair was trading in a upward trend and reached resistance level 0.9940. During the New York session the USD/CAD pair pushed 40 pips lower before the price continued the movement within the bullish mood. The USD/CAD pair finished Friday's deals at 0.9918 level. Today in the early Asian session we could observe the USD/CAD pair trading in the bullish mood.Today the USD/CAD pair is expected to test 0.9950 level.Also it is necessary to consider the data concerning the CAD Wholesale Sales m/m that could affect the rate of the pair.

Support and Resistance levels
(S3) 0.9878 (S2) 0.9894 (S1) 0.9903 (PP) 0.9918 (R1) 0.9934 (R2) 0.9943 (R3) 0.9958

USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished the wave 1 (colored pink) of the bigger C wave (colored blue) in the point 0.9946 and wave 2 (colored pink) in the point 0.9880. Presently we can observe the extended wave 3 (colored pink). In accordance with our wave rules and taking into account that the wave 3 retraces 161.8% of the wave 1, we can define the potential targets with help of Fibonacci extension (0.9871-0.9946-0.9880) with first Take Profit at level 0.9984 (138.2% of the wave 1) and second Take Profit at 1.0000 (161.8% of the wave 3). For Stop Loss we can use the invalidation point at level 0.9871.

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long position at levels 0.9930 with Stop Loss at 0.9871, Take Profit at 0.9984 and Take Profit 2 at 1.0000 are recommended.