31.05.201212:51 Forex Analysis & Reviews: USD/CAD Elliott Wave Count for May 31, 2012

Long-term review

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USD/CAD Elliott Wave
Yesterday the USD/CAD pair was trading in an upward movement developing B wave. During the European session we could observe the ascending movement towards the 1.0290 level. Therefore during the New York session the USD/CAD continued pushing higher and reached new daily high at 1.0310 level. This major pair did not manage to hold this level during the second half of the NY session and price pushed lower towards 1.0272 level. Today during the early Asian session the price pushed higher again and reached 1.0311 level. We can consider this move as the end of the B wave and the price is expected to be located under 1.0200 level today. In accordance with our wave rules and taking into account that the wave 4 retraces 38.2% of the wave 3, we can define the potential targets with Fibonacci retracement (0.9956-1.0310) with Take Profit at 1.0175 (38.2% of wave 3). Yesterday high at 1.0310 level can be used as Stop Loss. Also it is necessary to consider the data concerning the U.S FOMC Member Pianalto Speaks, ADP Non-Farm Employment Change, Prelim GDP q/q, Unemployment Claims, Prelim GDP Price Index q/q, Chicago PMI, Crude Oil Inventories and CAD Current Account the rate of the pair.

Support and Resistance Levels
(S3) 1.0181 (S2) 1.0217 (S1) 1.0239 (PP) 1.0276 (R1) 1.0312 (R2) 1.0334 (R3) 1.0371

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 1.0250 with Stop Loss at 1.0310 and Take Profit at 1.0175 are recommended

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