08.06.201217:33 Forex Analysis & Reviews: USD/CAD Elliott Wave Count for June 8, 2012

USD/CAD Elliott Wave
Yesterday during the Asian and European session the USD/CAD pair had descending movement developing end of the (2) wave (colored green). After this major pair found support around 1.0210 level and finished corrective (2) wave we could observe start of the upward movement for the start of the (3) wave. During the New York session price reached 1.0282 level. Today during the Asian session the USD/CAD pair continued trading in a bullish mood and price reached 1.0340 level.We can consider this move as the end of the 1 wave (colored blue) and at the moment we could observe start of the 2 wave (colored blue).In accordance with our wave rules and taking into account that the wave 2 retraces 61.8% of the wave 1, we can define the potential targets Fibonacci retracement (1.0210-1.1.0350) with Take Profit 1 at 1.0279 (50% of wave 1) and Take Profit 2 at 1.0263 (50% of wave 1). Resistance level at 1.0370 can be used as Stop Loss point. Also it is necessary to monitor the CAD Housing Starts, Employment Change, Trade Balance, Unemployment Rate, Labor Productivity q/q and U.S Trade Balance, Wholesale Inventories m/m data that can change the exchange rate of the pair.

Support and Resistance Levels
(S3) 1.0175 (S2) 1.0208 (S1) 1.0228 (PP) 1.0260 (R1) 1.0293 (R2) 1.0313 (R3) 1.0345

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 1.0330 with Stop Loss at 1.0370,Take Profit 1 at 1.0279 and Take Profit 2 at 1.0263 are recommended.