Thursday November 19, 2009 - 19:33:01 GMT
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FX Times: Daily Technical Update USD/CAD Invalidate, Reassess Via FX Times
November 19, 2009 (USD/CAD)
USD/CAD Invalidating Short-term Bearish Case
- 4H: Our anticipated bearish case failed. (Refer to Daily Technical Update 11.17.2009 USD/CAD). The market instead broke above a downsloping trendline as well as the 1.0600 powerlin, invalidating the projection to 1.0220.
- Daily: Looking at the daily timeframe, there is a
possible ABCD pattern developing. Very aggressive traders may look to
this short-term bullish scenario, but a more conservative approach is
to wait for the test of 1.1100, which would be the completion of the
emerging ABCD pattern. If there is topping action there, we can once
again visit the bearish case.
- The bearish setup will have a better reward to risk ration than the
current short-term bullish trigger would provide. This follows the
logic that since the established trend is still bearish in the
medium-/long-term, bullish triggers have short-term targets, while
bearish triggers can have short-term but potentially medium-term
targets as well.
- Therefore, we will continue to stalk the pair and pay extra attention at the 1.1100 area.
Commodity Trading Advisor
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All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
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