USD/CAD Testing Patience of Breakout Traders

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eliottWaves_usd-cad_body_usdcad.png, USD/CAD Testing Patience of Breakout Traders

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

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FOREXAnalysis: “The close 2 weeks ago 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) although levels of interest before then are 1.0853/84 and 1.0225 (2 equal legs from the 2011 low and 50% of the decline from the 2009 high).” Momentum has waned since the breakout which is reason to question whether or not the breakout will fail.

FOREXTrading Strategy: Order to buy 1.0440 was triggered on 6/27 and the stop is now 1.0420 (original stop was half at 1.0360 and half at 1.0170).

LEVELS: 1.0423 1.0468 1.0500 1.0563 1.0657 1.0853

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