USD/CAD Elliott Wave Count for May 11, 2012 ^2012-05-11

USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading in a downward movement. During the European session we could observe the descending movement in this major pair toward the 0.9990 level. Therefore during the Ney York session the USD/CAD pair found support at 100EMA and price pushed higher reaching new daily high at 1.0033 level. Today the USD/CAD pair continued trading in a bullish mood and price is currently testing 1.0050 level. We can consider this move as the end of B wave (coloured blue). Presently we can observe developing of the C wave of the bigger (2) wave (coloured green). In accordance with our wave rules and taking into account that the wave (C) retraces 161.8% of the wave (A), we can define the potential targets with Fibonacci extantions (1.0063-0.9975-1.0053); the First Take Profit at 0.9943 (127.2% of wave A) and Second Take Profit at 0.9913 (161.8% of wave A). As Stop Loss we can use the resistance point at 1.0080. It is also necessary to consider the data concerning the US US PPI m/m, Core PPI m/m, Prelim UoM Consumer Sentiment and CAD Employment Change, Unemployment Rate that can affect the rate of the pair.

Support and Resistance levels
(S3) 0.9956 (S2) 0.9976 (S1) 0.9988 (PP) 1.0009 (R1) 1.0029 (R2) 1.0041 (R3) 1.0062

Trading Forecast
Proceeding from Elliott Wave Rules, today the trend is expected to begin the downward movement. That is why Short positions at level 1.0020 with Stop Loss at 1.0080, Take Profit 1 at 0.9943 and Take Profit 2 at 0.913 are recommended.

Nicola Delic is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.

Performed by Nicola Delic, Analytical expert InstaForex Group © 2007-2013