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Market Overview
On Friday during the European session the USD/CAD pair was trading within the upward movement and reached the resistance level 1.0030. During the New York session the USD/CAD pair retested this resistance level twice, having failed to hold it. Thus, the price pushed down to 0.9975 level.Today during the Asian session we could observe the bullish mood; the price reached the 0.9990 level. Today the USD/CAD pair is expected to test 0.9950 level. Also it is necessary to consider the data concerning the USD Fed Chairman Bernanke Speaks, Pending Home Sales m/m and CAD BOC Gov Carney Speaks that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9929 (S2) 0.9953 (S1) 0.9968 (PP) 0.9993 (R1) 1.0017 (R2) 1.0032 (R3) 1.0057
USD/CAD Elliott Wave Analysis
The USD/CAD pair has finished the wave A (colored blue) of the bigger wave B (colored green) in the point 0.9964. Presently we can observe the end of the wave B (colored blue). In accordance with our wave rules and taking into account that the wave B retraces at least 50% of the wave A, we can define the potential targets with the help of Fibonacci retracement (0.9841-1.0033) with First Take Profit at 0.9937 (50% of wave A) and Second Take Profit at 0.9915 (61.8% of wave A). For Stop Loss we can use the 1.0033 invalidation level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short position at levels 1.0000 with Stop Loss at 1.0033, Take Profit at 0.9937 and Take Profit 2 at 0.9915 are recommended.
