Monday November 27, 2006 - 05:56:51 GMT
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Daily Analysis for USDCAD
Resistance: 1.1360 ... 1.1384 ... 1.1405 ... 1.1426
Support: 1.1305 ... 1.1289 ... 1.1254 ... 1.1227
We now expect a test of 1.1254-89 from where a reversal higher should be seen
Losses have bitten deeper than expected and thus we need to consider a slightly different wave structure. This should see support develop between 1.1254-89 from where we anticipate a move higher. A move back above 1.1363 will assist and if seen would signal follow-through back to the 1.1426 corrective high.
MT Bullish: The deeper pullback was a disappointment but we feel this is part of a larger correction and while 1.1254-89 supports the upside still looks attractive for a move above 1.1426 and to the 1.1493 high. (November 27th)
Daily Bearish: We didnâ€™t see the additional gains but corrective losses still look limited. We note support in the 1.1254-89 area and this looks firm. Thus a stronger bearish stance will require a break below 1.1254 and if seen would signal sharper losses down to 1.1227 at least and possibly further towards 1.1173-77.
MT Bearish: Although the 1.1350-70 area was broken we do not want to get too bearish until the 1.1254 level breaks â€“ and we are more bullish. Thus only below 1.1250 would extend losses to 1.1173 & 1.1130. (November 27th)
ELLIOTT WAVE COMMENTS
We have adjusted the wave count to mark the 1.1493 high as daily Wave (iii) and this should cause a pullback to the 50% retracement at 1.1289 at least while we should allow for a 58.6% retracement at 1.1254. However, while this holds we can look for either Wave (v) to develop or see a more complex Wave (iv).
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