Friday June 29, 2007 - 05:30:00 GMT
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Daily Analysis for USDCADPrice:
Resistance: 1.0606 ... 1.0639 ... 1.0665 ... 1.0686
Support: 1.0572 ... 1.0547 ... 1.0527 ... 1.0497
I look for a correction back to 1.0639-53 (max 1.0665) before lower again
The breach of 1.0635-40 has triggered stronger losses. However, within the decline I see potential for a pullback from the 1.0572 low and this will require a break back above 1.0606 which should retest the 1.0539-53 area at least. At the most we may just see a retest of 1.0665. However, this should be the most we see. Thus a stronger bullish stance will require a break above 1.0670 and then we would see the elastic band whip us back to the 1.0757 high.
The break of trend support suggest the upside is complete. Thus to revert to a more bullish picture we shall need to see break above this line around 1.0653-65. Then weâ€™d be looking for 1.0757 again & above. (June 29th)
The break of the trend support opens up the downside again. However, I do feel we should see a retest of the trend line which is around 1.0653-65 and from there we should see stronger losses. A move below the 1.0572 low seen yesterday would extend the downside through the 1.0547 low and down to 1.0467-97 at least.
The break lower looks ominous although we are not that far from an initial low. While 1.0653-65 caps we should see losses down to 1.0467-97 at least â€“ below and the floor opens upâ€¦ (June 29th)
ELLIOTT WAVE COMMENTS
The break of the trend line does suggest losses. Now I find the recovery to 1.0757 to be very, very shallow for a full correction and thus I want to take things step by step.
However, in the decline from 1.0757 I see we seem to have reached a 176.4% projection in minor Wave ii at 1.0572 and this should cause a 41.4%-50% correction in Wave iv around 1.0639-53 which is where the prior trend support lies and this should produce a good selling point for a Wave v lower.
As this progresses we can establish targets.
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