USD/CAD: Looney Like Niagara Falls
Admirals | Jul 11, 2013 07:45AM ET
After creating 4 flags out of which 3 ended with a further upswing, USD/CAD decided to fall. Of course the movement was caused by the FED and Ben Bernanke, not the technical analysis. Bernanke weakened the American Dollar stating that numerous economic conditions need to be met before shutting down the QEIII. As we can see on the chart, the downswing found the temporary S/R levels at the 38.2 and 50 Fibonacci levels. Currently bulls are fighting for the long lower wick which could have a chance to trigger a short-term buy signal on this pair. Technically this reversal switches the long-term buy signal into a sell signal. Although short positions are in favor now, we cannot exclude the possibility of a correction of yesterday’s downswing in the near future.
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