USD/CAD Squeezed between Near Term Support and Intraday Downtrend

The USD/CAD has alerted a Continuation Channel Down on the 15 minute chart as the crude oil market recovers from its brief dip below $63.00/barrel.





A level of support has been established with recent lows at 1.0823, 1.0830, and 1.0831. This in turn is reflected in the Initial Trend reading as this trending pattern on this short term 15 minute timeframe has a very low indication of a current trend.

The daily chart is still holding onto the double bottom, but intraday charts are in varying degrees of a distribution cycle. This means that the trend is sideways but is trading within a wider, less predictable range. The set up here will capitalize on whether the trend is truly down, in which case the 15 minute chart is an early indication. Watch the downtrend line resistance at 1.0868. If the low Initial Trend is indicating a slowing downtrend, do not assume that it's a reversal, but simply that it's a stall. The reversal trigger will be the downtrend line's failure to keep price within the pattern. As prices break 1.0830 and head towards the downtrend line support at 1.805, one could also play an aggressive short set up.


For further information, visit http://autochartist.com