USD/CAD – Signs of the Next Bull Leg
20 November 2009
The FX Trader's view -
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WEEKLY CHART: The downmove has so far stopped short of the 76.4% level at 1.0000 (however, there is no requirement that this be reached).
Ahead of here support has come from near the 1.0296 Sep-08 low, the take-off point for the last major upleg - it was briefly eroded but a rebound has been prompted.
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DAILY CHART:
The initial recovery found clear
resistance from the 1.0880 23.6% retracement. It remains the first key resistance, and a close above this would provide a bullish signal.
Our focus would then turn to the area of the 1.1124 17-Aug high which currently coincides with a bear channel top projection.
Whilst temporary resistance may well be seen here we would expect the recovery to push higher.
We are currently leaning towards the idea that the recent pullback was temporary/corrective, ahead of a further upleg.
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Philip Allwright
Mark Sturdy
Seven Days Ahead
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