USD/CAD Follows Through after Friday Breakout

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eliottWaves_usd-cad_body_usdcad.png, USD/CAD Follows Through after Friday Breakout

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: Wrote last week that “the trendline that extends off of the May 2010 and October 2011 highs pinpointed the USDCAD high in May. As long as price is below 1.0420, respect potential for a deeper correction of the advance from .9632. Near term, the hold at 1.0150 favors a constructive bias towards 1.0260/87. The USDCAD has shot through everything and has just the high to contend with at this point. The close this week is important…allow that before passing judgment on what’s next.” Friday’s close confirmed a break above the trendline that extends off of the May 2010 and October 2011 highs. This is a longer term breakout and the measured objective is 1.1909 (1.0657-.9406 + 1.0657). The breakout is valid as long as price is above 1.0170 and initial support is estimated at 1.0420/40.

FOREXTrading Strategy: Order to buy 1.0440, stop on half at 1.0360 and on half at 1.0170

LEVELS: 1.0270 1.0360 1.0420/40 1.0526 1.0657 1.0853

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