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Market Overview
Yesterday the USD/CAD pair was trading within the downward movement. During the European session the major started the ascending movement towards the 0.9930 level.Therefore, in the early New York session we could observe the downward movement towards the 0.9860 level. The USD/CAD pair finished the trading day few pips above daily low at 0.9875 level.Today during the early Asian session we could observe the bullish movement to the 0.9890 line. Today the USD/CAD pair is expected to test 0.9950 level. Also it is necessary to consider the data concerning the USD Building Permits, Housing Starts, Treasury Sec Geithner Speaks and Fed Chairman Bernanke Speaks affect the rate of the pair.
Support and Resistance levels
(S3) 0.9816 (S2) 0.9843 (S1) 0.9860 (PP) 0.9886 (R1) 0.9913 (R2) 0.9930 (R3) 0.9956
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished the B wave (colored blue) in the point 0.9860 level. Presently we can observe the start of the wave C (colored blue). Proceeding from our wave rules and considering that the wave C is equal to the wave A, we can define the potential targets with the help of Fibonacci retracement (0.9842-1.0027-0.9860) with first Take Profit at level 1.0005 (78.6% of the wave A) and second Take Profit at 1.0044 (100% of the wave A). For Stop Loss we can use 0.9860 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 0.9920 with Stop Loss at 0.9860, Take Profit at 1.0005 and Take Profit 2 at 1.0044 are recommended.
