February 24, 2011 – USD/CAD Forms Another Descending Triangle
Simple Moving Average(SMA) 50-period (red), 200-period (bold, gray)
RSI-14 with Simple Moving Average 5-period of RSI attached.
Fibonacci Study
Elliott Wave Principles
Market and Price Action (patterns, candlesticks)
Intraday pivots and Intermediate-term support and resistance
Multiple Time-frame Analysis
Previous: Forex Notes (2/23)
USD/CAD
- As expected the USD/CAD continues to be choppy, but retains the bearish bias. The daily chart shows that previously, we had a descending triangle with the base just below 1.0, parity. Now, after some sideways action, we are developing lower highs, but the base is at 0.9820 area. It is not a perfect descending triangle, but the important thing is the dynamics of lower highs, and relatively flat support.
- The bearish targets remain near 0.9710 area, and below that near 0.9360 area. The bullish scenario remains locked away until at least a break above 1.0050.
- The 4H chart chart shows the market hammering at this 0.9820/0.9815 support. The RSI should break back below 40, and below 30 if the bearish scenario is to materialize. As our highs have been lower and lower by increments of about 50 pips, we might expect resistance near 0.90 for the next bullish attempt.
Will the USD/CAD crack below the current descending triangle? We would love to hear what you think.
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Fan Yang CMT
Chief Technical Strategist
FXTimes
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. FXTimes 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 analysis.
he GBP/CHF might finally have topped off after a sharp rally from 1.44 to 1.54 (a 1000-pip swing).
- There is a cluster of 61.8% fibonacci retracement level, psychological resistance at 1.54, as well as a previous support for a double top that was broken (after which, the slide from 1.60 extended to 1.44.
- This volatile pair also has the RSI now failing to sustain a break above 60 – all these are signs of topping.
- The 4H chart also shows the topping action in more detail, and lays out some fibonacci retracement levels as targets for conservative bearish scenarios.
