Technical Analysis – USD/CAD Room to Fall

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)
Technical Analysis   USD/CAD Room to Fall

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