August 27, 2008 04:20

Technical Analysis – USD/CAD Room to Fall

Posted In: Technical Analysis
By:

8-27-08

4:26a GMT – USD/CAD has plenty of room to fall on the 4-hour and daily charts, which is backed by a strong downtrend on the weekly and monthly charts. Oil prices have hit monthly lows and a rise in oil prices (which is a leading indicator for the CAD) would indicate a fall in the USD/CAD as the CAD strengthens. Pair is consolidating in a triangular pattern (yellow converging lines on chart below). Support is currently found above 1.0400. Below this level I expect a 100 pip fall to 1.0300 at a minimum.

Trading Idea: shorts favored on a break below 1.0400 with initial targets to 1.0300.

(click to enlarge)

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4 Comments on "Technical Analysis – USD/CAD Room to Fall"
  1. Reply
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    Comment left on:
    August 30, 2008 at 07:13
    Roland says:

    Do you still think that USD CAD has further to fall?

  2. Avatar of piphut
    Reply
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    Comment left on:
    August 30, 2008 at 15:31
    piphut says:

    Absolutely I do but it is going to depend on the price of oil and how well the dollar does over the coming days.

    On this particular trade the pair never made a break below 1.0400 therefore no trade was entered.

  3. Reply
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    Comment left on:
    September 4, 2008 at 10:45
    charles says:

    Can you please make prediction on tomorrows Trade Non-farms payroll.

  4. Avatar of piphut
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    Comment left on:
    September 4, 2008 at 17:39
    piphut says:

    Hi Charles,

    I don’t trade news and definitely don’t try and predict news. I’ve found it is about the same as going to a casino and betting against the house.

    Mark

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