September 2, 2008 02:06

Technical Analysis – USD/CAD Downside Trade

Posted In: Technical Analysis
By:

9-2-08

4:00a GMT – USD/CAD is approaching strong daily resistance between 1.0700-1.0730. To strengthen the trade we have Hurricane Gustav touching down today and tomorrow against the US coast which will send shivers down oil speculators about US gulf production. An increase in oil prices will favor the CAD. This trade is against the overall uptrend but I feel that USD/CAD has a tendency to range trade and this looks like a good opp.

Trading Idea: look for bearish reversal candlestick to confirm trade with short targets at 1.0610, 1.0555 and 1.0455.

(click to enlarge)

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