Gauging the USD/CAD Bounce on the Daily

The daily chart of the USD/CAD is in a distribution market cycle and this sets up an distribtion fade entry long off support. While I am sharing a longer term upside target in the chart below, there wll be resistance at a minor downtrend line at 1.0400 and a ceiling at the 1.0600 major psychological level.

The Stochastic (I use a 21 setting) was ovesold as prices reached the floor an now it’s heading higher towards overbought, which could indicate potential exhaustion at the near-term 1.0400 target.

08-10-2010 usdcad daily.bmp

Chart date range 25-Mar 00:00 GMT-> 09-Aug 00:00 GMT
Data Interval Daily

SummaryTarget Level 1.0675
Stop Level 1.0106

Triangle identified at 10-Aug 00:00 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 1.0675.

Resistance Levels(B) 1.0675 Last resistance turning point of Triangle.

Support Levels(A) 1.0106 Last support turning point of Triangle.


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