08.10.201211:18 Forex Analysis & Reviews: USD/CAD Wave Analysis for October 08,2012

Long-term review

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USD/CAD Elliott Wave

For the last few days the USD/CAD pair was trading in a downward move developing impulsive wave (1) (coloured orange) of the bigger wave 5 (coloured purple). During the Friday's European session we could observe strong descending movement from 0.9810 towards 0.9734 level and we can consider this move as the end of the impulsive wave (5) (coloured green) of the bigger wave (1) (coloured orange). Therefore, during the New York session the USD/CAD pair started pushing higher when development of the corrective wave (2) (coloured orange) started. This major pair is trading around 0.9890 level at the moment and we are expecting to see price around 0.9827 soon. In accordance with our wave rules and taking into account that the wave C should retrace 100% of the wave A, we can define the potential targets with measuring wave A, with Take Profit at 0.9839 (100% of wave A). To reduce the risk, we can use invalidation at 0.9771 level as Stop Loss. Also you need to know that U.S. and Cad Bank have holiday today so we do not expect too much volatility today.

Support and Resistance
(S3) 0.9666 (S2) 0.9701 (S1) 0.9743 (PP) 0.9778 (R1) 0.9820 (R2) 0.9855 (R3) 0.9897
Trading Forecast
Proceeding from Elliott Wave rules today, the trend is expected to begin the upward movement. That is why long positions at level 0.9795 with Stop Loss 0.9771 and Take Profit at 0.9839 are recommended.

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