USDCAD stays in a trading range between 1.0416 and 1.0617. The price action from 1.0416 is more likely consolidation of downward trend from 1.0852. Another rise to test the upper border of the rising price channel on 4-hour chart is possible later today, as long as the channel resistance holds, downtrend is expected to resume and one more fall towards 1.0206 previous low could be seen. However, a clear break above the channel resistance will indicate that the fall from 1.0852 has completed at 1.0416 already, then the following uptrend could take price to re-test 1.0852 resistance.
Archive for November, 2009
USDCAD broke above the falling price channel on 4-hour chart. However, the rise can reach 1.0617 level only. Now the fall from 1.0617 is more likely resumption of downtrend from 1.0852, and another fall towards 1.0206 previous low is still in favor. Key support is at 1.0416, a break below this level will indicate that a short term cycle top has been formed at 1.0617 and confirm the resumption of downtrend. On the up side, above 1.0617 will suggest that the fall from 1.0852 has completed at 1.0416 already, then further rally could be seen to 1.0700 zone.
USDCHF stays in a trading range between 1.0035 and 1.0193. Moving sideways without trend in the range is expected later today. However, the price action from 1.0035 is more likely consolidation of downward trend from 1.0338, another fall towards 0.9900 is still possible after consolidation, and a breakdown below 1.0035 could signal resumption of downtrend.
GBPUSD is forming a short term cycle bottom at 1.6515 level on 4-hour chart. Now the rise from 1.6515 is possibly be resumption of uptrend from 1.5708, a break above 1.6840 key resistance will confirm the cycle bottom and signal another rally towards 1.7042 (Aug 5 high). Support level is at 1.6515, below this level will suggesting that the uptrend from 1.5708 has completed at 1.6841 level already, then the following downtrend could take price back to 1.6300-1.6350 area.
After breaking above 0.9326 previous high resistance, AUDUSD dropped below 0.9254 key support, suggesting that a short term cycle top has been formed at 0.9368 level on 4-hour chart and the rise from 0.8916 has completed. Pullback towards 0.9000 zone would more likely be seen in next several days. Resistance level is now located at 0.9368, only rise above this level will indicate that uptrend from 0.8916 has resumed, then next target would be at 0.9500 area.
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As expected, GBPUSD formed a short term cycle top at 1.6841 level on 4-hour chart. Deeper decline is still possible later today and next target would be at 1.6400 zone. However, the fall from 1.6841 is more likely consolidation of uptrend from 1.5708, another rise towards 1.7042 (Aug 5 high) could be seen after consolidation. Resistance is now at 1.6700, above this level could signal resumption of uptrend.
Being contained by 1.5062 previous high resistance, EURUSD pulled back from 1.5019, suggesting that a minor consolidation of uptrend from 1.4626 is on the way. Another fall towards the lower border of the rising price channel is possible later today. However, as long as the channel support holds, we’d expect uptrend to resume and further rise towards 1.5200 could be seen after consolidation. Key resistance is at 1.5062, above this level will confirm the resumption of long term uptrend from 1.3748 (June 16 low).
The following article was adapted from the November 2009 Elliott Wave Financial Forecast and reprinted with permission here. Until Nov. 11, you can read the rest of this brand-new report for free, during Elliott Wave International’s FreeWeek of U.S. forecasts. Learn more about FreeWeek, and download the rest of this report and others for free here.
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