Tuesday January 16, 2007 - 05:24:27 GMT
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Daily Analysis for USDCADPrice:
Resistance: 1.1721 ... 1.1748 ... 1.1780 ... 1.1800
Support: 1.1658 ... 1.1633 ... 1.1607 ... 1.1583
While 1.1633-58 supports we look for further gains back above 1.1721
Losses have moved down to the top end of our support range at 1.1633-60 and we shall now look for a reversal back higher. We still need to be cautious of a possible dip to the 1.1633-40 area though. Only an earlier break above 1.1721 area would imply the downward correction is complete and if see would trigger follow-through higher to 1.1748 minimum and probably back to the 1.1780-00 area which should provide temporary resistance.
With support at 1.1630-50 holding we can now look for the next leg higher that should first retest 1.1800 and later 1.1888-1.1918 at least. (January 16th)
Losses were seen to the top end of the 1.1630-60 support range. We do still need to be aware of a deeper test of this area and while 1.1712-21 caps this is still possible. However, only a clean break of 1.1630 would imply a deeper move lower in which case weâ€™d look for losses towards 1.1578-90.
We retain our bullish stance and only below 1.1630 would imply losses to the 1.1570-80 pivot support. (January 16th)
ELLIOTT WAVE COMMENTS
Still no test of the perfect 223.6% projection in Wave iii at 1.1818 and it is possible that the 1.1800 high satisfied this target. If this is the case then a move below 1.1706-19 would allow a 50%-58.6% retracement to 1.1633-60 to complete Wave â€“iv- before moving higher again.
Only an earlier move above 1.1818 would see the upside extend more strongly to the 138.2% projection in Wave (c) at 1.1918.
It looks like we are seeing Wave iv completing in the 1.1630-60 range and thus we shall look for Wave a of Wave v to move back towards the 1.1800 high.
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