USD CAD Confirms Weekly Double-Top

Growing confidence that the U.S. economy is bottoming is helping to support the Canadian Dollar at the mid-session.  Today’s trading action also confirmed the weekly double-top at 1.3015 and 1.3062.

Growing confidence that the U.S. economy is bottoming is helping to support the Canadian Dollar at the mid-session. Overnight pressure was completely relieved this morning following a better than expected U.S. Housing Report. 

The strong surge in the equity markets is also helping the Canadian Dollar. Recent action in this market indicates a strong link to the stock market. Gains in key commodity markets such as precious metals and crude oil have also been supportive.

It looks as if the Bank of Canada made the right decision in deciding not to apply quantitative easing to the economy. The Canadian Dollar has surged since it decided to take a wait and see attitude on this powerful monetary tool.

Technically, the daily swing chart is indicating much lower markets.  Today the weekly swing bottom at 1.1759 was slightly violated.  This confirmed the weekly double-top at 1.3015 and 1.3062.  Expectations are for this market to continue to work its way to  the target zone at 1.1058 – 1.0586.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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