Tuesday October 23, 2007 - 04:03:14 GMT
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Daily Analysis for USDCAD
||I suspect a correction lower within an overall bullish structure|
||The 0.9632 low held and the stronger recovery is suggesting that we have possibly seen a major low. However, we have reached the recent corrective high at 0.9820-24 already and thus a correction is likely before the next leg higher. There is support at 0.9705-28 which is likely to hold. From there a move back above 0.9824 will open the way for a move to the 0.9900 pivot resistance area. |
||The sharp recovery to 0.9824 is encouraging. We now need this high to break to extend the upside to the 0.9900 pivot are and the last major corrective high at 1.0014 â€“ at most 1.0094. (23rd October)|
||With the sharp reversal to 0.9824 there is reason to feel the downside is complete but we cannot rule out a correction lower and these can be quite severe. There is support at 0.9750-55 and then between 0.9705-28. I suspect this lower area will hold. Thus any stronger bearish stance will require a breach of 0.9705 and then 0.9677 which will force a retest to the 0.9632 low. |
||The small breach of 0.9639 should raise warning bells and while 0.9694-05 caps, any loss of 0.9597 would extend to 0.9527 and probably lower â€“ I will need to review the weekly charts then. (23rd October)|
ELLIOTT WAVE COMMENTS
The 0.9639 target has been met and we need be willing to react to breaks now.
If this moves below 0.9597-0.9632 I will need to review the weekly charts to identify the next downside targets.
This does look like a reversal higher with stronger bullish divergences in daily & weekly charts. The last peak at 0.9820 has been tested and once this breaks look for a test back at the old Wave -b-.
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