FX.co ★ USD/CAD Elliott Wave Count for March 2, 2012

Market Overview
Yesterday the USD/CAD pair was trading in downward movement. During the European session this major pair started pushing in bearish mood to the 0.9870 level, therefore during the New York session the USD/CAD pair continued to following the trend and price reached a new low at 0.9840 level.Today we can observe bullish mood in the Asian session.

Today the USD/CAD pair is expected to test 50 EMA resistance before we can see price reaching a new low.

Also it is necessary to consider the data concerning the Canadian GDP that could affect the rate of the pair.

Support and Resistance levels
(S3) 0.9808 (S2) 0.9830 (S1) 0.9844 (PP) 0.9866 (R1) 0.9888 (R2) 0.9902 (R3) 0.9924

USD/CAD Elliott Wave Analysis
The USD/CAD pair finished the 5th impulse wave of the bigger ((3)) wave at 0.9840.

Presently we can observe the end of ((4)) wave. In accordance with our wave rules and taking into account that the wave ((4)) will finish in 3 corrective waves under 0.9906 level we can enter short in Final ((5)) wave. Assuming that wave ((5)) will be equal as ((1)) wave we can project our targets to First Take Profit at 0.9800(61.8% of ((1)) wave) and Second Take Profit at 0.9745(100% of ((1)) wave).For Stop Loss we can use invalidation point at level 0.9906.

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. Therefore, short position at levels 0.9865 with Stop Loss in the point 0.9906 Take Profit 1 at 0.9800 and Take Profit 2 at level 0.9745 are recommended.