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Market Overview
Yesterday the USD/CAD pair was trading upwards. During the European session the major started the ascending movement to the 0.9920 level. Therefore during the New York session we could observe continuation of the bullish mood and price reaching new high at 0.9968 level, the USD/CAD pair did not manage to hold this level and at the end of the New York session we could observe price around 200 EMA Support link.Today during the Asian session we could observe a downward move to 0.9880 level. Today the USD/CAD pair is expected to test 0.9870 level before we can see price back to 200 EMA Resistance. Also it is necessary to consider the data concerning the USD Fed Chairman Bernanke Testifies, Existing Home Sales and CAD Leading Index m/m that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9809 (S2) 0.9850 (S1) 0.9875 (PP) 0.9915 (R1) 0.9956 (R2) 0.9981 (R3) 1.0021
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished 1 wave (colored pink) of the bigger C wave (colored blue) in the point 0.9968. Presently we can observe end of 2 wave (colored pink). 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 extension (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 an upward movement. That is why long positions at levels 0.9900 with Stop Loss at 0.9860,Take Profit 1.0005 and Take Profit 2 at 1.0044 are recommended.
