USD/CAD Bullish Trade Setting Up

DailyFX

Daily

View photo

.
eliottWaves_usd-cad_body_usdcad.png, USD/CAD Bullish Trade Setting Up

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

Automate trades with Mirror Trader

-USDCAD made a key reversal on a larger than average range last Thursday. Friday’s follow through confirms the tradeable low.

-More important, the reversal occurs at a huge support level defined by the line that extends off of the September 2012 and January 2013 lows as well as the 100% extension of the decline from the July high (2 equal legs) AND corrective channel support.

-The reversal occurred on heavy volume (20 day high in CME volume).

-Price has retraced the entire Fed move (USDCAD was at 1.0290 at 2 pm on Wednesday) to trigger a possible news reversal trade. USDJPY trade from last Thursday exemplifies a successful news reversal trade.

Trading Strategy: Order to go long at 1.0267, stop 1.0180, target half 1.0400

LEVELS: 1.0181 1.0232 1.0264 | 1.0317 1.0355 1.0409

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments (0)