USDCAD – 4 hour
The 4 hour chart shows the recent drop in the USDCAD, touching the October lows today. The drop over the past 2 weeks has been swift with no significant countertrend pullbacks until yesterday’s brief bounce. This indicates the strength of the downtrend, and implies that prices will break through the .9975 support level set in mid-October.
USDCAD – Daily
The recent downtrend takes on greater significance when one looks at the daily chart. Prices had been stuck in a trading range for over 4 months, following the Greece crisis in early May. Prices briefly broke out in mid-October, but quickly returned back inside the range. Now that prices have pushed back out of the range, and made a lower low, we can expect the market to trend again, headed downward.
USDCAD – weekly
A look at the longer term weekly chart gives us a much broader perspective of the USDCAD. Prices have essentially gone no where for over a year, following a volatile period in late 2008 and 2009. This extended consolidation creates a tremendous amount of potential. If prices do break out of this range, we can expect a powerful move towards the record lows near 90, set in Nov 2007.
Written by bforex.com