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#1 ⇑ Haut ⇑ 30-01-2013 09:35:41
- Bruno
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USD / CAD: Short-term ascending broadening wedge
After a bullish rally towards the resistance at 1.01, following a triple bottom on the USD/CAD pair, the price then began yesterday a correction. Since the return below 1.0040, we are neutral between this level and the psychological level at 1.0.
In the short term, a broadening ascending wedge appeared (black lines). It is a reversal pattern which suggests a break of the support at 1.0. Two scenarios are possible:
- Breakout of 1.0. The pattern will be confirmed. It is important to note that in 80% of cases there is downward output with this type of pattern. We will aim for a return on the major support at 0.9950. The breakout of this level will give a new sell signal.
- Back above 1.0040 would mark a resumption of the bullish movement. A new test of resistance at 1.01 would be expected.
USD/CAD 1h chart
In the short term, a broadening ascending wedge appeared (black lines). It is a reversal pattern which suggests a break of the support at 1.0. Two scenarios are possible:
- Breakout of 1.0. The pattern will be confirmed. It is important to note that in 80% of cases there is downward output with this type of pattern. We will aim for a return on the major support at 0.9950. The breakout of this level will give a new sell signal.
- Back above 1.0040 would mark a resumption of the bullish movement. A new test of resistance at 1.01 would be expected.
USD/CAD 1h chart
USD/CAD 4h chart
#2 ⇑ Haut ⇑ 01-02-2013 09:55:45
- Bruno
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Re: USD / CAD: Short-term ascending broadening wedge
The broadening ascending wedge announced the break of the psychological level at 1.0 and this scenario was realized yesterday. A sell signal has been given. The price made an output from the bottom of its wedge and is now moving towards the major support at 0.9950. In the short term, a bearish slant was formed and reinforces our bearish sentiment on the USD/CAD pair.
We continue to advise short positions as far as 1.0034 is resistance. This level corresponds to the lower limit of the wedge. The downward break of 0.9950 will give a new sell signal and we could then expect a full retracement of the last bullish movement initiated on the support at 0.9905.
In case of return above 1.0034, we advise you to return positions and to trade only the long positions.
USD/CAD 1h chart
We continue to advise short positions as far as 1.0034 is resistance. This level corresponds to the lower limit of the wedge. The downward break of 0.9950 will give a new sell signal and we could then expect a full retracement of the last bullish movement initiated on the support at 0.9905.
In case of return above 1.0034, we advise you to return positions and to trade only the long positions.
USD/CAD 1h chart
USD/CAD 4h chart
#3 ⇑ Haut ⇑ 08-02-2013 09:06:09
- Bruno
- Trader, Analyst and webmaster for Forex-Tribe
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Re: USD / CAD: Short-term ascending broadening wedge
The indecision ofinvestors is full on the pair USD/CAD which from the beginning of the week is moving horizontally between the major support at 0.9950 and the psychological resistance at 1.0. At the exit of this range, a powerful movement is expected. In the short term, the price broke its bearish slant (blue line) but an old bullish slant (purple line) is now resistance.
We continue to advise short positions as far as 1.0 is resistance. The downward break of 0.9950 would mark the resumption of the downtrend and should cause a new downward acceleration to 0.9905.
However, if the price breaks the resistance to 1.0, a buy signal will be given. We would then expect a quick test of 1.0036 and then 1.0050 in extension.
USD/CAD 1h chart
We continue to advise short positions as far as 1.0 is resistance. The downward break of 0.9950 would mark the resumption of the downtrend and should cause a new downward acceleration to 0.9905.
However, if the price breaks the resistance to 1.0, a buy signal will be given. We would then expect a quick test of 1.0036 and then 1.0050 in extension.
USD/CAD 1h chart
USD/CAD 4h chart
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USD / CAD: Short-term ascending broadening wedge
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