Pro Commentary Lite ... 27th August 2007 ... USDCAD

An excerpt from FX-Strategy’s Pro Commentary
[B]Price:[/B] 1.0511
[B]Resistance:[/B]1.05201.05521.05751.0600[B]Support:[/B]1.04901.04611.04401.0400

[B]Bias:[/B]Mixed – waiting for breaks
[B]Daily Bullish:[/B]Price remained in a tight range and really hasn’t cleared up the picture. I would still prefer to be bullish but we do require the 1.0461-72 area to remain supporting and see a break back above 1.0551 and then 1.0570-75. If we see break of this higher level then we can look for a stronger rally that should move through the 1.0600-10 pivot resistance and onto 1.0627 minimum and probably the 1.0665 area where we need take care as this could cause a correction. Next resistance is then found at 1.0715. [B]MT Bullish:[/B]While the 1.0530 support broke the last key support at 1.0461 has remained in tact and while this remains so I still feel the upward cycles should soon kick in with stronger gains. ([B]24th August[/B])[B]Daily Bearish:[/B]With lack of recovery back above 1.0551-75 we must still be aware of the downside risk. However, before getting too bearish we really need a break below the 1.0461 corrective low. If seen then look for additional losses to the 1.0400 area (give or take 10-15 points) where a correction is likely. This structure would raise the risk of losses down to 1.0339 once again. [B]MT Bearish:[/B]The break back below 1.0660-92 has caused a problem with gains. However, at this point I am not really in favor of losses and only below 1.0456-63 would suggest a retest of 1.0339 before higher again. ([B]20th August[/B])

[B]ELLIOTT WAVE COMMENTS[/B]

[B]24th August:[/B]

We have seen this Wave (x) dip all the way to 11 points above the prior Wave (b) but this should hold to start a new ABC pattern higher. A move back above the 1.0666 corrective high will confirm with the first Wave (a) likely to stall around the 1.0865 high.

Any earlier break below 1.0461 would begin to highlight the chance of a flat correction implying a move down to around the 1.0339 low before the Wave Fc higher back to 1.0865 and 1.0907 which is a 38.2% correction of the decline in daily Wave –iii-
[B]Ian Copsey[/B]
[B]See Also[/B]

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[li]FX-Strategy Pro Commentary[/li]Insightful analysis guiding you through the trading day[/ul]