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Market Overview
Yesterday the USD/CAD pair was trading within the downward trend. During the European session the major started descending movement to the 0.9960 level (100 EMA Support). Therefore, during the New York session we could observe the continuation of the bearish mood; the price has reached the daily low at 0.9905. Today during the Asian session we could observe sideways movement of the pair. Today the USD/CAD pair is expected to test 0.9880 level before going higher than 1.0000. Also it is necessary to consider the data concerning the USD S&P/CS Composite-20 HPI y/y,CB Consumer Confidence and Fed Chairman Bernanke Speaks that can affect the rate of the pair.
Support and Resistance levels
(S3) 0.9846 (S2) 0.9881 (S1) 0.9903 (PP) 0.9938 (R1) 0.9973 (R2) 0.9995 (R3) 1.0030
USD/CAD Elliott Wave Analysis
The USD/CAD has finished A wave (colored blue) of the bigger B wave (colored green) in the point 0.9964 and B wave (colored blue) in the point 0.9998. Presently we can observe the end of C wave. Proceeding from our wave rules and considering that the wave B will retrace 78.6% of wave A, we can define the potential targets with the help of Fibonacci retracement (0.9841-1.0033) with Take Profit at 0.9882 (78.6% of wave A). For Stop Loss we can use the 0.9930 resistance level.
Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin an Downward movement. That is why short positions at levels 0.9905 with Stop Loss at 0.9930 and Take Profit 0.9882 are recommended.
