FX.co ★ USD/CAD Elliott Wave Count for February 23, 2012

Market Overview
The USD/CAD pair was trading in upward move yesterday, in the European session we could observe price broke the 200EMA resistance and reached a new high at the 1.0019 level, The USD/CAD did not manage to hold this level and started falling 20 pips in the New York session above the 0.9990.Today in the Asian session this major pair continued a downward move,Price is currently around 0.9970 and we are expecting to see price under 0.9900 in the next few days, We need to take a look at USA Unemployment Claims today that could affect this pair.

Support and Resistance levels
(S3) 0.9921 (S2) 0.9948 (S1) 0.9964 (PP) 0.9990 (R1) 1.0017 (R2) 1.0033 (R3) 1.0059

USD/CAD Elliott Wave Analysis
The USD/CAD pair finished (3) wave at 78.6% retrace of wave (1) at the 1.0019 level and we are currently in (3) wave.According to our wave rules and taking into consideration that wave (3) will finish around 161.8% of (1) wave, we can project our potential targets with Fibonacci extension(1.0050-0.9906-1.0019) to first take profit level at the 0.9875(100% of wave (1)) and second take profit at 0.9785(161.8% of wave (1)).For Stop Loss we can use end of wave (2).

Trading Forecast
Proceeding from Elliott Wave Rules the trend is expected to begin the downward movement to go lower today. That is why Short position at levels 0.9950 with Stop Loss at 1.0019, Take Profit 1 at 0.9875 and Take Profit 2 at 0.9785 are recommended