FX.co ★ USD/CAD Elliott Wave Count for April 10, 2012

USD/CAD Elliott Wave
The USD/CAD pair was trading in an upward trend during the European session Monday. We can observe price testing the 1.0000 level. The USD/CAD pair did not manage to hold this level and we can observe bearish movement during the session in New York - towards 0.9957 (100EMA support). We can consider this move as 3 wave (coloured pink) of the bigger (C) wave (coloured green).Today during the Asian session we could observe price to test 200EMA support before price continuation in a bullish mood. We can consider this move as wave 4 (coloured pink). Presently we can observe start of the 5 wave. In accordance with our wave rules and taking into account that the wave C is equal to wave A, we can define the potential targets with Fibonacci extensions (0.9987-0.9998-0.9906); the First Take Profit at 0.9992 (79.6% of wave A) and Second Take Profit at 1.0015 (100% of wave A). As a Stop Loss we can use the support level at 0.9965. Also it is necessary to consider the data concerning the U.S. IBD/TIPP economic optimism, wholesale inventories m/m and FOMC member Lockhart Speech that can affect the rate of the pair.

Support and Resistance levels
(S3) 0.9915 (S2) 0.9937 (S1) 0.9951 (PP) 0.9973 (R1) 0.9995 (R2) 1.0009 (R3) 1.0031

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long positions at level 0.9970 with Stop Loss at 0.9965,Take Profit 1 at 0.9992 and Take Profit 2 at 1.0015 are recommended.