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FOREX Technical Analysis: USD/CAD Pops; Allow for Consolidation Before Chasing

By , Sr. Technical Strategist
23 January 2013 21:06 GMT

Weekly Bars

eliottWaves_usd-cad_body_usdcad.png, FOREX Technical Analysis: USD/CAD Pops; Allow for Consolidation Before Chasing

Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0

FOREXAnalysis: “The 5 wave rally from 9632 does suggest that the trend is higher from that point. The goal now is to identify the secondary low (wave 2 or B).” Today’s surge makes it far more likely that a 3rd or C wave is underway towards. Levels of interest are 10223 (where the rally from 9633 would consist of 2 equal legs) and 10266 (61.8% of decline from 10657). Trend and channel lines intersect in mid-February near these levels, which are also defined by pivot high from July.

FOREXTrading Strategy: Buy weakness, preferably near 9950 (former resistance), with a stop below today’s low (9902).

LEVELS: 9849 9903 9945 10009 10056 10100

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23 January 2013 21:06 GMT