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Market Overview
The USD/CAD pair started yesterday’s trading day in a sideways move, this major pair tested 50EMA Resistance twice before we saw price above 0.9970 level, main reason for the USD/CAD pair to rise is good Housing Starts report 198k from a expected 193k, In the New York session the price found resistance few pips above medium term channel line under  09985 level.The USD/CAD pair started pushing in a bearish mood today in a early Asian session to the 0.9950 level.We are expecting to see the USD/CAD pair under 0.9920 level today ,we need to take a look at USA Unemployment Claims that could affect this pair.

Support and Resistance levels
(S3) 0.9906 (S2) 0.9927 (S1) 0.9940 (PP) 1.0803 (R1) 1.0833 (R2) 1.0851 (R3) 1.0880

USD/CAD Elliott Wave Analysis

The USD/CAD pair finished wave B of the bigger wave e at 0.9989 level.We are currently in the wave C.According to our wave rules and taking into consideration that the wave C will be equal as wave A ,we measure Take Profit level with Fibonacci extension(1.0033-0.9928-0.9989) to the 0.9885 level. For stop loss we can use end of wave B at 0.9989.

Trading Forecast
Proceeding from Elliott Wave Rules the trend is expected to begin the downward movement to go lower today. That is why Short position at levels 0.9950 with Stop Loss at 0.9989 and Take Profit at 0.9885 are recommended.

The material has been provided by Instaforex Company – instaforex.com
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