Elliott Wave - AUD/USD, EUR/USD

Usd/Cad bounced higher yesterday from 61.8% Fibonacci support to 76.4% resistance level around 1.0720. 1.0660 was not strong enough to push prices down for more than 40 pips. Prices should not reach any new highs today, leaving this wave count from yesterday valid.

We also discussed the Eur/Usd which traded lower to Fibonacci retracement levels that are shown on yesterday' daily chart. Prices broke through the weekly trend line support very powerfully with current lows at 1.4210. Today' closing of a weekly candle should reveal a lot. Prices should bounce higher next week if the market pushes higher prices, otherwise, we can expect a stronger dollar, maybe with prices around the 1.4000 levels. Elliott waves are signaling for bulls on the long term picture.

Aud/Usd A Turning Point?

Prices on this pair are trading in a very critical support area right now. The market is threatening some strong Fibonacci levels just below 0.8200 so traders are expecting the turning point here especially because of this two year long support trend line. On this pair, we have very similar situation as on the Eur/Usd, we should pay close attention on today' closed weekly candle. If the prices after today' trading hours will be above the 0.8200 level then we can expect a huge bounce in the coming weeks. As you know this pair is also highly correlated with the commodities, so in this case we can also expect a bounce on the Oil.

Eur/Usd Bounce?

The market dropped yesterday after the prices bounced from the 38.2% Fibonacci resistance level in the same area as previous wave four creating a nice opportunity for short positions on this one after the prices broke through the small black trend line around 1.4500. The market created really sharp red waves ii) and iv) in the black wave v, which made a complete A-B-C correction in wave 4. If we are on the right track now then we should see a huge bounce on the upside in the next few weeks. Traders should remain on the side lines now on almost all pairs in order to see if the dollar bulls are really done or if they still have enough room to push higher.

Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com

TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.

The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.