Pro Commentary Lite March 23rd 2007 ... USDCAD

An excerpt from FX-Strategy’s Pro Commentary

Price: 1.1564
Resistance:1.16001.16271.16571.1679Support:1.15541.15271.1503-131.1460

Bias:We still prefer a scenario looking for 1.1627 (max 1.1657) to cap before additional losses
Daily Bullish:Gains were gradual yesterday stalling at 1.1591. We tend to feel there is still some upside left and while 1.1554-60 supports it should allow further gains to 1.1627 at least. In fact we prefer this level as the corrective peak but should allow for a fuller correction at 1.1657. Thus a more bullish picture will require a move above 1.1657 and also 1.1679 and if seen then it will allow gains to extend to 1.1711 and possibly 1.1755. MT Bullish:The break down to 1.1527 provides a more bearish target. Thus only a break back above 1.1657-80 would provide an earlier reversal higher. (March 22nd)Daily Bearish:We are comfortable with the gains but still feel we should see more towards 1.1627 (max 1.1657). From this higher area we shall look for additional losses below 1.1527. Only an earlier break below 1.1554 would threaten the 1.1527 low and possibly down to 1.1503-13 which at this point we feel will hold. Breach causes direct losses to 1.1445-60. MT Bearish:We still look for 1.1627-57 to cap for the next leg lower to 1.1394 and possibly as deep as the 1.1320 level. (March 23rd)

ELLIOTT WAVE COMMENTS

23rd March

We are a little more confident in calling the 1.1527 low as Wave –iii- being a 176.4% projection. The 38.2% correction in Wave –iv- rests at 1.1627 and 50% at 1.1657. We favor this area holding and given the depth of the Wave –ii- we feel that 1.1627 should be the most we see to allow Wave –v- to continue lower.

We note two potential targets in Wave C – the first at 1.1394 being a 138.2% projection and our favored target at 1.1320 being a 161.8% projection.
Ian Copsey
See Also

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[*]FX-Strategy Pro CommentaryConsistent and insightful analysis[/ul]