USD/CAD Elliott Wave Count for May 22, 2012 ^2012-05-22

USD/CAD Elliott Wave
The USD/CAD pair was trading in a downward move yesterday. During the European session we could observe ascending move toward the 1.0225 level. Therefore during the early New York session we could observe continuation of the bullish mood and price reached 1.0245 level (daily high).The USD/CAD pair did not manage to hold at this level and price started pushing lower in the second half of the NY session. Today during the Asian session price reached new 2 days low at 1.0155 level (100EMA support). Presently we are in the corrective 4 wave and I expect to see price under 1.0110 level today. In accordance with our wave rules and taking into account that the wave 4 retraces 61.8% of the wave 3, we can define the potential targets with Fibonacci retracements (1.0053-1.0245) with Take Profit 1 at 1.0117 (50% of wave 3) and Take Profit 2 at 1.0087 (61.8% of wave 3). The resistance level at 1.0200 can be used as Stop Loss. Also it is necessary to consider the data concerning the U.S Existing Home Sales that can affect the rate of the pair.

Support and Resistance levels
(S3) 1.0113 (S2) 1.0144 (S1) 1.0163 (PP) 1.0194 (R1) 1.0225 (R2) 1.0244 (R3) 1.0275

Trading Forecast
Proceeding from Elliott Wave Rules this week the trend is expected to begin the downward movement. That is why Short positions at level 1.1165 with Stop Loss at 1.0200, Take Profit 1 at 1.0117 and Take Profit 2 at 1.0087 are recommended

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