Seven Days Ahead offer financial and commodity market forecasting, technical trading analysis, forex forecasting service, stock market trading recommendations, guides and strategies in the UK.Sign up now

Bull Signal in Canadian Dollar

15 January 2009

The FX Trader’s view.

The 2008 recovery in USD/CAD last year found good resistance around the 1.3000 level. The chart has been consolidative for two/three months, but now, within this consolidation area, an interesting bull signal has occurred.

MONTHLY CHART: The relatively quick recovery off a 0.9056 Nov-07 low has so far failed to reach the next Fibo level of 61.8%.

WEEKLY CHART: The current consolidation has found nice support at/above the 38.2% level of the 2007-08 recovery. The chart structure suggests another upleg can be anticipated, before we look closer for signs of medium term bear fatigue.

DAILY CHART: In the latest FX Trading Guide we had been looking for a break above the two small highs from Dec for a bull trigger, which has now happened. This follows good support from the 76.4% area within the consolidation pattern. The chart now looks well-placed to challenge resistance from the 1.3000 area, with a greater chance of breaking through this time. Next target would be that 61.8% level of 1.3465 from the Monthly Chart. First support comes from those 1.2373/60 Dec highs.

Receive three Market Updates fully-illustrated with charts each week for one month FREE

Next story:
The Yen is winning

Previous story:
Initial Soybean Upleg Now Complete

< Back to menu

Financial Market Forecasting | Bonds Technical Trading Analysis | Commodity Specialist Guide | Daily Indices Guide | Technical Trading Guide UK |
Site Map | SEO Services | We're listed in the UK Business Directory