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Daily Forex Technical Report − USD/CAD

Tue, Jan 27 2009, 12:21 GMT
by ActionForex.com Team

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Intraday bias in USD/CAD remains on the downside as long as 1.2385 minor resistance holds. However, while further fall cannot be ruled out, we're still expecting support from the current zone of 1.2104/2339. Above 1.2385 minor resistance will flip intraday bias back to the upside. Further break of 1.2765 will target a retest of 1.3005/15 resistance zone. However, below 1.2104 will indicate that rebound from 1.1761 has completed and deeper fall should be seen to this support and below.

In the bigger picture, there is no confirmation of completion of medium term up trend from 0.9056 yet. Such rise is expected to be developing into a five wave sequence (1.0378, 0.9823, 1.3015, ......). Consolidation from 1.3015 is treated as the fourth wave consolidation and might have completed at 1.1761 already. Decisive break of 1.3005/15 will confirm medium term up trend resumption and should then target 61.8% retracement of 1.6196 to 0.9056 at 1.3469. On the downside, below 1.2104 support will argue that consolidation from 1.3015 is extending further for another test of 1.1464 support before completion.


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