USDCAD rebounded strongly from 1.0471, suggesting that a cycle bottom is being formed on 4-hour chart. Another rise to test 1.0676 (Jul 6 high) key resistance is possible in a couple of days, a break of this level will confirm the cycle bottom, then further rise to 1.0750 could be seen. Key support is now at 1.0471, below this level will indicate that the uptrend from 1.0107 has completed at 1.06666 already, then the following downward movement could bring price back to 1.0200 zone.
Archive for August, 2010
EURUSD remains in downtrend from 1.3333, and the bounce from 1.2587 is treated as consolidation of downtrend. Resistance is at the upper border of the falling price channel, as long as the channel resistance holds, downtrend is expected to continue and next target would be at 1.2500 area. However, a clear break above the channel resistance will indicate that a cycle bottom is being formed on 4-hour chart, then further rise towards 1.2921 key resistance could be seen.
USDCAD failed to break above 1.0676 (Jul 6 high) resistance and formed a cycle top at 1.0666. Pullback towards 1.0400 area would more likely be seen in next several days. As long as 1.2400 support holds, the fall from 1.0666 could be treated as consolidation of uptrend from 1.0107, one more rise to 1.0750 is still possible, however, below 1.0400 will indicate that the rise from 1.0107 has completed at 1.0666 already, then deeper decline could be seen to 1.0200 zone.
Being contained by 1.0676 (Jul 6 high) resistance, USDCAD formed a minor consolidation in a range between 1.0556 and 1.0666. Key support is at 1.0556, as long as this level holds, uptrend could be expected to continue and further rise to 1.0750 is still possible after consolidation. However, a breakdown below 1.0556 will indicate that a cycle top has been from at 1.0666 level on 4-hour chart, then pullback towards 1.0400 could be seen.
By Elliott Wave International
On Aug. 12, volatile market action coincided with a technical signal called the Hindenburg Omen, whereby a relatively high number of new highs and lows in individual stocks occur at the same time.
USDCHF failed to break above 1.0464 resistance and pulled back from 1.0450. Another fall to 1.0200 would more likely be seen, however, a break below 1.0257 previous low is needed to confirm the resumption of downtrend. Key resistance remains at 1.0464, only break above this level could bring price back to 1.0550-1.0600 area.
USDCHF broke above the downtrend line from 1.0624 to 1.0464, suggesting that a cycle bottom is being formed at 1.0257 on 4-hour chart. Key resistance is at 1.0464, a break above this level will confirm the cycle bottom and indicate that the fall from 1.0624 had completed, then the following upward movement could bring price to 1.0550-1.0600 area. Support is at 1.0257, only break below this level could trigger another fall to 1.0200 zone.
USDCHF stays below a downtrend line from 1.0624 to 1.0464 and remains in downtrend. As long as the trend line resistance holds, downtrend is expected to continue and next target would be at 1.0200 area. On the other side, a clear break above the trend line resistance (now at 1.0415) will indicate that a cycle bottom has been formed at 1.0257 already and the fall from 1.0624 has completed, then further rally could be seen to 1.0500-1.0600 area.
By Elliott Wave International
Of all the belief systems of Wall Street, few can claim the devoted following of the Efficient Market Hypothesis, the idea that stock prices adhere to the same laws of supply-and-demand that govern retail products. Once coined the theoretical "Parthenon" of economics, this notion has consistently endured the test of time —– until now. Academics and advisors across the globe are currently exposing crack after crack in the "Efficient" model so deep as to bring the entire theory crashing to the ground.
As expected, USDCAD broke above 1.0340 key resistance, suggesting that a cycle bottom had been formed at 1.0247 level on 4-hour chart. Now the rise from 1.0247 is treated as resumption of uptrend from 1.0107, further rise could be seen in next several days and target would be at 1.0600 zone. Support is at 1.0340 and key support is at 1.0247, only break below these levels could trigger another fall to 1.0000 area.
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