AUDCAD PLAY

AUDCAD weekly chart

We have a main course which is being followed by Prices we can count a 5 wave up and a 3 wave correction

1 then 2 and followed by a possible wave 3 up to to the 1st target of 1.0322 and beyond if 2 holds 

Support 0.9850 and then 0.9704 exit weekly long.

However since prices have touched the median line and thus  dropped off and may be on a corrective course out of Poseidon Poseidon staff is otherwise know as 'Anderws Pitch fork'.  The Second P.staff has been depicted by the second internal P.staff pointing dwn and on a new course down. However, Price are currently sitting on 0,9850 support so until 0.9860 and finally 0.9704 is broken which should be outside Poseidon the view is still up.  Target for Long term AUDCAD if correction stops at Wave 2 at 0.9850 support then 1.0332  is the next Target up and beyond.

Daily AUDCAD

Our sincere thoughts go out to the people effected in Australia With the current flood events the size of France and Germany and then improved retails sales in Canada, the dwn ward slid has continued. 

A butterfly Sell @ 0.9999 has caused Prices to head to the down outside and heading for a possible breach of the Poseidon warning line. I originally thought Prices would stop at the 4 wave but as we all know wave 4 should not proceeded into wave 1 on the daily which has happened with a 8 day confirmed cross over and prices well into the bottom half of the BBands. There fore this count is cancelled.We will watch to see if this Warning line will be breached confirming the 3d wave decline.

AUDCAD 240 chart

If you look closely we have mapped a course in both direction with a  1,2,3 Elwave count  to the dwn side and a Harmonized buttefly sell to the dwn side once again if Prices break  Poseidon, 3rd wave down will be confirmed to 1st target of 0.9750 and then 78.6%  2nd target of  0.960 strong support which then also could extend to 100% expansion 0.950. This is will only take place if prices break the alternative Poseidon median line course to the Down Side marked by the circle. Remember there is strong support @ 9750 50% Retracement and December X Low and the edge of Poseidon heading to the long term up side on the higher time frames. however we need to Waite and see how oil and events develop in both countries. 

Currently we are short from 0.9897 

a little news from Kathy to support Technical's

The big release from North America this morning was the Canadian retail sales report which showed consumers spending voraciously in the month of November. Retail sales rose 1.3 percent, the strongest pace since March while spending on everything outside of autos rose 1.0 percent. Although the Bank of Canada predicted that consumer spending will slow in 2011 due to high levels of debt, the strength of the labor market has made consumers more willing to spend. As long as jobs continue to be created at a healthy pace, it will lend support to the retail sector but we cannot ignore the fact that the November report includes holiday shopping sales. What was most encouraging about the consumer spending report was the fact that sales volume which is not impact by prices also rose 1.3 percent. Knowing the Bank of Canada, they will most likely interpret the data with caution. They have been more concerned about the strength of the Canadian dollar and the impact that it would have on exports than on the domestic economy. Unless retail sales prints above 1.0 percent for another 2 to 3 months, they will err on the side of caution and wait for the USD/CAD exchange rate to move comfortably above parity because raising interest rates again.