FX.co ★ USD/CAD Elliott Wave Count for April 6, 2012

USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading in a downward movement. During the European session this major started the ascending movement towards the 0.9998 level. We can consider this move as 5 wave; the bigger wave A (coloured blue) is finished. Therefore during the New York session we could observe the strong bearish mood that pull price to the new daily low at 0.9906 level. With this strong downward movement the wave B (coloured blue) was over. Today the USD/CAD pair continues its movement within a bearish mood and price is currently around 0.9925 level. Presently we can observe the start of C wave of the bigger (C) wave (coloured green). In accordance with our wave rules and taking into account that the wave C is equal as wave A, we can define the potential targets with Fibonacci extensions (0.9987-0.9998-0.9906); the First Take Profit at 0.9975 (61.8% of wave A) and Second Take Profit at 0.9994 (78.6 of wave A). For Stop Loss we can use the end of B wave at 0.9905. Also it is necessary to consider the data concerning the U.S. Non-Farm Employment Change and Unemployment Rate that can affect the rate of the pair

Support and Resistance levels
(S3) 0.9853 (S2) 0.9888 (S1) 0.9910 (PP) 0.9945 (R1) 0.9980 (R2) 1.0002 (R3) 1.0037

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long positions at level 0.9940 with Stop Loss at 0.9905,Take Profit 1 at 0.9975 and Take Profit 2 at 0.9994 are recommended.