FX.co ★ USD/CAD Wave Analysis for December 04, 2012

USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading in an upward move, corrective (B) wave (coloured green) of the bigger (2) wave (coloured red) was developing. During the Monday's European session we could observe descending movement toward the 0.9914 level. Therefore, during the New York session this major pair did not manage to hold this levels and the price started pushing higher reaching a level of 0.9951. At the moment the USD/CAD pair is trading around 0.9940 level and we are expecting to see the price higher today. In accordance with our wave rules and taking into account that the wave B should retrace 61.8% of the wave A, we can define the potential targets with measuring wave A with take profit at 0.9999 (61.8% of wave 1). To reduce the risk, we can use support at 0.9915 level as stop loss.

Support and Resistance
(S3) 0.9890 (S2) 0.9902 (S1) 0.9927 (PP) 0.9939 (R1) 0.9964 (R2) 0.9976 (R3) 1.0001

Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9950 with stop loss 0.9915 and take profit at 0.9999 are recommended.