Thursday January 14, 2010 - 16:28:39 GMT
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Daily Technical Update USD/CAD Bearish Continuation Signal
Daily Technical Update
January 14, 2010 (USD/CAD) Bearish Continuation Signal
- Daily and 4H: The USD/CAD was held bearish after short-term downsloping trendline held as the resistance at the 1.0400 level.
- In the Daily, you can see that the market is near oversold area,
but is crossing towards it (a sign of bearish continuation). But, the
candlestick action is not showing signs that it will break 1.0200
- In the 4H time-frame, We can see a pause at the 1.0300 area in the
Wednesday Asian/European session. The market started another attempt to
decline in the US session. If the market can close below 1.0300, it may
be a bearish continuation signal in this time-frame as well.
- A swing projection in 4H chart, also brings the market to 1.0200
(127% expanded retracement). This would complete a bullish butterfly.
As this is also intermediate support, expect a rally here, but the
important thing is weather it can break the downsloping trendline.
- A break above this trendline may suggest a rally towards 1.0550
(intermediate-term downsloping trendline in Daily), if that breaks, the
1.0750-1.080 area is the short/intermediate-term range resistance.
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
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believed to be reliable, author does not guarantee its accuracy or
completeness. CMS will not accept liability for any loss of profit or
damage which may arise directly, indirectly or consequently from use of
or reliance on the trading set-ups or any accompanying chart analyses.
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not be suitable for all investors.
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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