Wednesday December 6, 2006 - 04:15:04 GMT
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Daily Analysis for USDCAD
Resistance: 1.1433 ... 1.1452 ... 1.1475 ... 1.1493
Support...: 1.1399 ... 1.1379 ... 1.1358 ... 1.1330
Mixed â€“ waiting for breaks though the upside looks favored
Losses stalled perfectly at the 1.1379-80 support from where we have seen a recovery. For this to continue we require the 1.1433 & 1.1452 levels to give way. If seen then expect a retest of the 1.1475 high. Care advised around 1.1475-93 as this could stall the progress. Only above extends to 1.1542 and higher with 1.1572 the next major resistance.
With support at 1.1380 holding the risk is higher although there is minor risk of a second retest of 1.1380. Targets for the upside are at 1.1572 and possibly as high as 1.1640. (December 6th)
The 1.1380 support held and is expected to hold if there is a second attempt lower. A stronger bearish stance will require a break below 1.1380and then 1.1358 and if seen would extend the downside back to 1.1330 at least and possibly the 1.1285 low.
The structure looks more bullish and thus only a dip below 1.1369 would begin to cause concern. Break here and at 1.1345 would imply a move back to 1.1285 and possibly 1.1254. (December 4th)
ELLIOTT WAVE COMMENTS
We now label yesterdayâ€™s high at 1.1475 as Wave (a) of Wave (v) and thus we should be expecting a decline in Wave (b). A 50% retracement would imply support at 1.1380 but it will be best to be a little flexible here â€“ at most 1.1358 â€“ and from this broad area we expect Wave (c) of Wave (v) to develop.
The 1.1379 level appears to be the Wave (b) of Wave (v) and thus the risk is higher to the 61.8% daily target at 1.1572 and possibly the 76.4% at 1.1640 which also represent Wave equality and a 138.2% projection in Wave (c) respectively.
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