FX.co ★ USD/CAD Elliott Wave Count for April 4, 2012

USD/CAD Elliott Wave Analysis
The USD/CAD pair was trading within the upward trend yesterday. For this major the European session was successful, at the beginning we saw ascending movement to the 0.9928 level. We can consider this move as 1 wave (coloured pink), therefore during the early New York session the USD/CAD pair started to descend towards the 0.9892 level, this was the end of 2 wave (coloured pink). At the end of New York session price pushed higher and retested 50EMA resistance level. Today during the Asian session price has continued to go higher and we currently can observe the USD/CAD pair developing the 3 wave (coloured pink). In accordance with our wave rules and taking into account that the wave 3 should retrace to 161.8% of wave 1, we can define the potential targets with the Fibonacci extensions (0.9887-0.9928-0.9892); the First Take Profit should be at 0.9956 (161.8% of wave 1) and Second Take Profit - at 0.9972 (200% of wave 1). For Stop Loss we can use the 0.9915 resistance level. Also it is necessary to consider the data concerning the US ADP Non-Farm Employment Change, ISM Non-Manufacturing PMI, Crude Oil and CAD Gov Council Member Boivin Speech - Inventories that can affect the rate of the pair.

Support and Resistance levels
(S3) 0.9868 (S2) 0.9883 (S1) 0.9892 (PP) 0.9908 (R1) 0.9923 (R2) 0.9932 (R3) 0.9948

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long positions at level 0.9935 with the Stop Loss at 0.9915,Take Profit 1 at 0.9956 and Take Profit 2 at 0.9972 are recommended.