Elliott Wave - EUR/USD, USD/CAD

The Eur/Usd set-up discussed yesterday bounced higher as expected, while at the same time Usd/Cad stayed caught in the range, which price structure on the one hour chart looks like a possible triangle at the moment. This means that prices should not be traded into the 1.0430 resistance area, which was also mentioned yesterday. There is no clear trend in the market at all as the traders avoid potential fall-out of today’s U.S. Bailout meeting.

Today's Charts

Eur/Usd

The euro reached and bounced higher from the 1.4600 area as the prices hit the RSI trend line support. The market traded for 170 pips, and as such profits may already have been booked. It is still unclear whether this is the correction or in the new impulsive move on the upside. The bailout rescue plan will probably help us on this. If the market trades higher in the today’s sessions then the first target on the upside will be somewhere above 1.4900, the 50% Fibonacci retracement point from 1.6 high. If the market has already hit the and found the high, and the break on the downside follows from fundamental news then the short targets remains wide open for new possible lows. Patience and Capital Preservation.

Usd/Cad

We are still on track with this pair, it is however getting more and more interesting with this price structure in blue wave iv). The retrace to 1.0430 resistance areas may not happen in quick time. The retracement points in the zig-zag correction move (that we were expecting yesterday) are obviously larger than in the correction of the triangle structure. So the 38.2% Fibonacci zone will not be reached, at least not with this wave count shown on the picture below. Traders that are ready to sell the U.S dollars in the near term should be watching two possible short levels. The first one could be on the upper resistance line of the triangle, in wave E to be more precisely, but firstly we need to see another move down to support area which move will be the move of wave D. The second short zone could be below the wave B of the triangle, if this triangle wave count is false. Traders should not forget the Bailout meeting today, before putting any excessive risk into the market.

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