FX.co ★ USD/CAD Elliott Wave Count for March 9, 2012

Market Overview
Yesterday the USD/CAD pair was trading within the downward movement. During the European session the major started the descending movement to the point 0.9942. During the New York session the USD/CAD pair increased by 20 pips before price had fined resistance at 100EMA and continued the bearish mood to the point 0.9891.Today during the Asian session we could observe the sideways move.Today the USD/CAD pair is expected to test the 0.9950 level, but it is also necessary to consider the data on the USA Non-Farm Employment Change, Trade Balance, Unemployment Rate and CAD Employment Change, Unemployment Rate, Trade Balance, as it can affect the rate of the pair.

Support and Resistance levels
(S3) 0.9832 (S2) 0.9869 (S1) 0.9892 (PP) 0.9929 (R1) 0.9966 (R2) 0.9989 (R3) 1.0026

USD/CAD Elliott Wave Analysis
The USD/CAD has finished a corrective wave b of the bigger (a) wave in the point 0.9890. Presently we can observe the start of the wave c. In accordance with our wave rules and taking into account that the wave c will be equal as wave a,we can define the potential targets with help of Fibonacci extension (0.9842-1.0027-0.989): Take Profit is to be placed at 0.9983 level (50% of a wave),Take Profit 2 is to be placed at 1.0005 level (61.8% of a wave) . For Stop Loss we can use the support level 0.9850.

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 0.9850, Take Profit at 0.9983, Take Profit 2 at 1.0005 are recommended