Major Currencies

cad

The sideways correction is almost over as a new upside wave is about to begin targeting the 1.0285 level at the very least as the momentum indicators show the potential for clear upside movements and the fourth correction wave in the Elliot wave that was initiated on July 15, 2008 and ended its third wave on July 29, 2008 was completed. At any moment the 1.0200 levels is breached, will stop the fifth upside wave.

The trading range is seen among 1.0120 support levels and 1.0380 resistance levels.

The general trend is to the downside as far as 1.0570 remains intact with targets at 0.9720 and 0.9305

    
chf

The pair yesterday reached levels near the 1.0400 level to retest the resistance level that was previously breached and has now become the support level for the upside channel. We still need to close above the level to open the way for further upside movements. Overall, momentum indicators today show that the pair is being overbought on the daily and short-term basis. From here we see trading to move sideways today with potential to the upside but at anytime the pair is able to remain above the 1.0400 it will cancel the possibility to target the 1.0345 level.

The trading range is seen among 1.0305 support levels and 1.0585 resistance levels.

The general trend is to the upside as far as 1.0010 remains intact with targets at 1.0725 and 1.0860

jpy

As we expected, the 108.40 level has become stronger yesterday as the pair underwent heavy profit taking transactions. Today we believe that the movement will be volatile sideways as the pair fell back to 107 but could be leaning more to the downside. However, if the pair was able to build a strong base above 108.40 a strong bullish wave will be initiated but if it retreated below the 107.30 level, the new wave will target 106.20

The trading range is seen among 105.90 support levels and 108.85 resistance levels.

The general trend is to the upside as far as 103.00 remains intact with targets at 109.90 and 113.24

   
gbp

Prices remain trading below the 20 day moving average at 1.9890 and the 50 day moving average at 1.9785 where trading withing these ranges show no specific direction. The pair is still below the support level to the upside channel with potential to the downside. The trend is undetermined as the direction of the pair remains weak as indicated by the ADX and from here we expect a sideways pattern until trading is away from the mentioned levels but the overall trend is to the downside after it had moved out of the upside channel that was initiated on June 12, 2008 and ended on July 29, 2008.

The trading range is seen among 1.9580 support levels and 2.0020 resistance levels.

The general trend is to the downside as far as 2.0460 remains intact with targets at 1.9267 and 1.9053

euro

Yesterdays incline was just a retest for the resistance levels where the close below the neckline of the downside trend at 1.5630 keeps the short-term trend to the downside targeting 1.53 but it could stop at the 38.2% level from 1.5516 due to momentum indicators showing that the pair has entered an oversold area. Overall we can't say anything but that the downside trend is dominating in the short term where we can see high volatility from time to time due to the high volume on the mixed technical indicators.

The trading range is seen among 1.5360 support levels and 1.5780 resistance levels.

The general trend is to the upside as far as 1.4900 remains intact with targets at 1.6178 and 1.6405