USD CAD Forex Chart 26 Aug 2010
The usd to cad is at an interesting point once again apparently having run into resistance at the 1.0677 price level once again with yesterday’s shooting star candle clearly indicating short term weakness in the recent rally. This candle should be read in conjunction with that of Wednesday where, once again, we saw the forex trading session for the usd cad close with a candle characterised by a deep upper wick, also suggestive of weakness. This has given us a clear short term forex trading signal of a tweezer top which has been given further weight by the well defined alignment with previous highs in this sideways trading channel. In particular the pullback in late June and also in late May. As such we can expect the usd cad to move lower in the next few days, possibly even to re-test support at the lower level of this trading channel in the 1.0139 price area. For the pair to reach this level we will need to breach all four moving averages once again and any one of these could present a platform of support to prevent a further decline. With the pair now trading at 1.0561 we can look for some short term forex trading opportunities to the downside with any protective stop loss based above the top of the tweezer candle formation.
