USDCAD broke below 0.9743 support, suggesting that a cycle top had been formed at 0.9816 on 4-hour chart, and lengthier consolidation of uptrend from 0.9444 is underway. Further fall is expected later today, and target would be at 0.9650-0.9700 area. Resistance is at 0.9816, only break above this level could signal resumption of uptrend.
Archive for May, 2011
USDCAD traded in a narrow range between 0.9743 and 0.9816. As long as 1.9743 support holds, the price action in the range is treated as consolidation of uptrend from 0.9444, and another rise towards 0.9900 is still possible after consolidation. However, a breakdown below 0.9743 will indicate that lengthier consolidation of uptrend is underway, then pullback to 0.9650-0.9700 area could be seen.
By Elliott Wave International
If the word ‘fractal’ comes up at all in conversation, that conversation is probably being held in a mathematics department. However, anyone who is interested in the Wave Principle and how it applies to the stock market may have stumbled across the phrase "robust fractal." If you want to know more about what it means in that context, here’s an excerpt from Elliott Wave International’s primer on fractals that explains the connection.
USDCAD moved sideways in a narrow range between 0.9743 and 0.9816. The price action in the range is treated as consolidation of uptrend from 0.9444. Further rise is still possible and next next target would be at 0.9900. Support remains at the uptrend line from 0.9513 to 0.9639, only a clear break below the trend line could indicate that lengthier consolidation of uptrend is underway, then pullback to 0.9650-0.9700 area could be seen.
In the video below, EWI Senior Commodity Analyst Jeffrey Kennedy walks you through a basic checklist of how to put the Wave Principle to work. This clip was taken from The Wave Principle Applied webinar, originally recorded for Futures Junctures subscribers.
GBPUSD broke above the trend line from 1.6516 to 1.6302, suggesting that a cycle bottom had been formed at 1.6059 on 4-hour chart. Now the pair is facing 1.6302 resistance, a break above this level will confirm that the downward move from 1.6745 had completed at 1.6059 already, then the following upward movement could bring price back to 1.6400-1.6500 area. However, as long as 1.6302 resistance holds, the bounce from 1.6059 is treated as consolidation of downtrend, and another fall to 1.6000 is still possible.
USDCHF stays in a trading range between 0.8747 and 0.8945. Another rise to test 0.8945 resistance would likely be seen later today, a break above this level will indicate that the uptrend from 0.8553 has resumed, then next target would be at 0.9100 zone. Support is at 0.8747, only break below this level will indicate that lengthier consolidation of uptrend is underway, then pullback to 0.8650 could be seen.
By Robert Folsom
"Panic selling" is easy to understand and recognize: Investors rush to sell from the fear of loss. No more explanation necessary.
AUDUSD broke below 1.0505 support and reached as low as 1.0478, suggesting that the downtrend from 1.1011 has resumed. Further fall could be seen in next several days, and next target would be at 1.0300 area. Resistance remains at the downtrend line from 1.1011 to 1.0888, only break above the trend line resistance could indicate that the fall from 1.1011 is complete.
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