Wednesday February 20, 2008 - 03:45:00 GMT
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Daily Analysis for USDCAD
||Cautiously, while 1.0118-34 supports look for further gains to 1.0236 â€“ max 1.0258-85|
||Gains reached into the 1.0166-94 area as expected. There is no sign of a peak as yet. Thus, while the internal structure is a bit clouded, watch the 1.0118-34 area. While this supports there is still risk of further gains that should move back above yesterdayâ€™s 1.0175 high but should then stall at 2.0212 minimum with a small risk of 1.0236. Care as this could cause a further pullback. Only above extends to 1.0258-85 which I feel should cap for losses.|
||The sharp reversal higher is raising the chance of a large sideways consolidation which would imply a target at 1.0258-85 which should cap. Only breach extends back to 1.0316 and 1.0376. (19th February)|
||Gain seen which have stalled at 1.0175. I still feel there should be additional gains so any bearish stance will require a break below the 1.010-20 area. Only if seen will this generate stronger losses that would allow a move through the 1.0070-80 pivot area and to 1.0047 minimum and at most 1.0016. |
||It is looking more and more that we are seeing continued sideways trading. Thus only below 0.9918 would re-open the possibility of a drop to 0.9750-55 again. (19th February)|
ELLIOTT WAVE COMMENTS
The sharp recovery from 0.9918 appears to suggest that the decline was merely a Wave â€“x- and thus we should see gains back to the 1.0258-85 area in an irregular triangle.
Only below 0.9918 now would re-open the bearish structure for a retest of the 0.9755 low in Wave efc of an expanded flat.
I feel now that we are seeing a new ABC pattern higher with a wave equality target at 2.0212 but then the 138.2% projection is at 1.0285 which is also where a 66.7% triangle projection lies in Wave ^d.
However, take care at 2.0212 as we could still see a Wave x and final ABC pattern to target.
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