FX.co ★ USD/CAD Elliott Wave Count for March 8, 2012

Market Overview
Yesterday the USD/CAD pair was trading within the downward movement. During the European session the major started the descending movement to the point 0.9955. During the New York session the USD/CAD pair increased by 40 pips before the price had continued the bearish mood. The USD/CAD pair has finished Wednesday's New York session around 0.9955 level.Today during the Asian session we could observe the downward move to the 0.9955 level.Today the USD/CAD pair is expected to test the 09930 level, but it is also necessary to consider the data on the USA Unemployment Claims and CAD BOC Rate Statementas, as it can affect the rate of the pair.

Support and Resistance levels
(S3) 0.9940 (S2) 0.9960 (S1) 0.9972 (PP) 0.9991 (R1) 1.0011 (R2) 1.0023 (R3) 1.0042

USD/CAD Elliott Wave Analysis
The USD/CAD has finished a corrective wave of the bigger (a) wave in the point 1.0027. Presently we can observe the end of the wave C of the bigger wave B. In accordance with our wave rules and taking into account that the wave B will finish at 50% of the wave A and that the wave C is equal to the wave B, we can define the potential targets to 1.0027(100% of b wave). For Stop Loss we can use 0.9900 support level.

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the upward movement. That is why long position at levels 0.9950 with Stop Loss at 0.9900 and Take Profit at 1.0027 are recommended.