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.
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