USD CAD Could Take Run at 1.1290

The USD CAD Main Trend on the daily chart is down, but today’saction indicates it be setting up for a test and possible breakoutthrough the last Main Top at 1.1290.  A move through this price willturn the Main Trend up.

Analysis

The USD CAD Main Trend on the daily chart is down, but today’s action indicates it be setting up for a test and possible breakout through the last Main Top at 1.1290.  A move through this price will turn the Main Trend up.

Earlier this week the rally confirmed last week’s closing price reversal bottom.  The first leg up from the bottom was 1.0783 to 1.1290.  This range created a retracement zone at 1.1040 to 1.098.

Following two days of lower-lows, the USD CAD tested this retracement zone and stopped at 1.0940.  The subsequent reversal to the upside regained both 1.0980 and 1.1040 on a closing basis.  This action indicates that the market may be setting up for a test of the Main Top at 1.1290.

A breakout through this price will turn the Main Trend to up and indicate a possible longer-term rally to 1.1922.

The swing chart is indicating the possibility of a short-term rally to 1.1448 by June 16th.

This entire bullish set-up will be negated by a close under 1.0980.

Daily Chart

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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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