USD/CAD Elliott Wave Count for May 08, 2012 ^2012-05-08

USD/CAD Elliott Wave
Yesterday the USD/CAD pair was developing corrective wave 4 (coloured blue). During the European session we could observe the descending movement towards the 0.9945 level. Therefore during the New York session we could observe the continuation of the bearish mood and price under 0.9930 level (50EMA). Today during the early Asian session we could observe price at 0.9923 support level.We can consider this move as end of the 4 wave. Presently we can observe start of the 5 wave and we are expecting to see price under 1.0000 soon. In accordance with our wave rules and taking into account that the wave 5 retraces 100% of the wave 1, we can define the potential targets with messuring the 1 wave and Take Profit at 1.0019 (100% of wave 1). For Stop Loss the resistance level at 0.9950 can be used. It is also necessary to consider the data concerning the CAD Housing Starts and USD FOMC Member Lacker Speaks that can affect the rate of the pair.

Support and Resistance levels
(S3) 0.9823 (S2) 0.9862 (S1) 0.9886 (PP) 0.9925 (R1) 0.9964 (R2) 0.9988 (R3) 1.0027

Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the upward movement. That is why Long positions at level 0.9980 with Stop Loss at 0.9950 and Take Profit at 1.0019 are recommended.

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