Friday June 1, 2007 - 05:04:07 GMT
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FX-Strategy - www.fx-strategy.com
Daily Analysis for USDCADPrice:
Resistance: 1.0721 ... 1.0757 ... 1.0784 ... 1.0801
Support: 1.0686 ... 1.0664 ... 1.0645 ... 1.0616
While 1.0721-57 caps there does seem to be further downside risk for 1.0608-16 at least
The break of 1.0774 does appear to suggest that we the downside remains soft. To break this we require price to rally back above 1.0721 and then 1.0757 and if seen it should allow a deeper recovery. Next resistance is at 1.0784-01 and this may well cause a pullback. Next resistance is at 1.0834-63.
Further losses keep the downside intact. Thus only above 1.0900 would allow a move back towards the 1.1062 corrective high. (June 1st)
The break down to 1.0664 does seem to deep to allow a larger recovery and it may well be that we shall continue to see price continue to ratchet lower. While 1.0721 caps there does appear to be risk of direct losses that would break below 1.0664 to see these decline to the 1.0608-16 area. Take care here as there is some suggestion of this being an important support.
We keep seeing supports broken and this does seem to suggest a test of 1.0608-16 at least and if the move extends then the 1.0828 area is implicated. (June 1st)
ELLIOTT WAVE COMMENTS
The break of 1.0774 seems to suggest we have greater losses to be seen. We note a 261.8% projection in Wave [iii] resting at 1.0608 and a wave equality target in Wave [c] at 1.0616. Thus we feel there should be additional losses to the area which should then cause a larger pullback in Wave [iv].
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