Elliott Wave - USD/CAD, USD/CHF

Eur/Usd traded lower yesterday and tested the support levels again around 1.4550. The euro has already bounced a few times back up for more than 100 pips. Move on Usd/Cad to new lows surprised a lot of traders out there, who were prepared to jump short. The reason for this move lower was due to the poor unemployment and new home sells numbers in the U.S. As a result, a lot of stop losses were probably hit yesterday. Traders should be very careful with the positions in this choppy market like we saw this week.

Today we reviewed the Usd/Cad chart again and the Usd/Chf pair for possible lower moves in the next week.

Today's Charts

Usd/Cad

The move that surprised traders yesterday was wave D of the triangle, discussed yesterday. This means that our perfect triangle is not the case anymore because of this false wave D. When we looked at the chart (below) we can see that prices are trading in the correction currently, which is still looking pretty bearish for the near future. The market bounced from the 1.0321 support area several times this week and these are probably only the signs that the break lower will come sooner rather than later. Traders who did not catch the short opportunity in wave E (On the upper side of the triangle) should wait on the move through the 1.0321 level first or at least on the break through the rsi trend line. In this case, the first target should be at 1.0278, and the second at 1.01472, where is the distance of blue wave i).

Usd/Chf

Looks like the market traded in the correction waves for the whole week. We are talking about the small blue wave ii) which made a pullback to the 38.2% Fibonacci resistance level of wave i). Market should be trading lower in the next week very powerfully after the possible cross on the MACD indicator. We have also noticed the break through the black trend line resistance just a few hours ago, which could be the first sign for the move lower till the end of the day and then also further next week. Have a nice weekend. Grega

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