Monday April 5, 2010 - 17:22:46 GMT
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FXTimes: Daily Technical Update USD/CAD: Strong Bearish Signal to Start the Week
USD/CAD: Strong Bearish Signal to Start the Week
- Daily and 4H: As anticipated in the weekly post,
the USD/CAD is continuing its decline to 0.9965 (150% retracement, and
61.8% expansion). (Refer to Weekly Technical Update; 4th pair).
- The RSIs for both Daily and 4H are lined up, showing strong bearish momentum.
- While the 4H time-frame shows there might be a bit of a oversold
condition, its inability to rise much higher than 60 previously
suggests there is enough bearish strength to stay oversold while the
market continues declining.
- 1H: The 1H chart shows that the near-term momentum is oversold. This means, there might be a correction in the US session.
- A pullback to the 23.6-38.2% retracement level could help confirm
the break below, as long as it does not break the declining 50-period
MA, and close the gap.
- It is also possible that the market continues to hit the 1.00
parity level before retracement. We would then have to adjust the
fibonacci retracement levels to the new low. For now, if the market has
a correction, look for topping between 1.0060 and 1.0080.
- If the market contines to decline into the US session, look for
bottoming at 1.0 and a correction before another swing to 0.9960.
Commodity Trading Advisor
Information and opinions contained in this report are for
educational purposes only and do not constitute an investment advice.
While the information contained herein was obtained from sources
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.
Foreign currency trading is not conducted on an exchange. CMS is
acting as a counterparty to its clientsâ€™ transactions and as a result,
CMSâ€™ interests may be in conflict with its clients. Since CMS acts as
the buyer or seller in the transaction one should carefully evaluate
any trade recommendation provided by CMS or any of its solicitors.
Foreign currency trading involves a substantial risk of loss and may
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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