Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. CMS will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analyses.
Foreign currency trading is not conducted on an exchange. CMS is acting as a counterparty to its clients’ transactions and as a result, CMS’ interests may be in conflict with its clients. Since CMS acts as the buyer or seller in the transaction one should carefully evaluate any trade recommendation provided by CMS or any of its solicitors. Foreign currency trading involves a substantial risk of loss and may not be suitable for all investors.
All screenshots are made from VT Trader 2.0 and are of actual market data at the time of the screenshot.
USD/CAD Monitoring Correction
- 1H: We anticipated a short-term correction to the downswing in the USD/CAD, where a scale down would have been prudent. (Refer to Daily Technical Update 11.09.2009 USD/CAD ).
- The correction took place after the US session, in the Asian session and the beginning of the European session.
- The retracement went to 61.8% before some rejection at the 1.0550 area. If the day can close below 1.0500, we have further confirmation for the decline.
- At the end of the session, if there is not further rally, we can move our stop closer using the 1.0550 as the powerline.
- The current rejection at 1.0550 and the stochastic crossover suggests if there was a scale down, this is the timing for a re-entry.
- Keep in mind our target is 1.0220, but we expect some trouble at the 1.0360 area too.