10 February 2010

USD/CAD : Causing Consternation

  • No direct position here in USD/CAD (last @ 1.0672). Only involved indirectly via short EUR/CAD. The USD/CAD leg is worrying and needs to be watched closely.
  • Monthly : Still down, but the 2 sharp reversals just off 1.02 has potential to turn into a double bottom. Caution.
  • Weekly : 1.0750-1.0800 is turning out to be key overhead resistance. Recent range bound trading could turn out to be a rounding bottom. On watch now for a sudden sharp (periscope) rally above 1.08. If that happens then I plan to give up on the EUR/CAD short even if that chart still looks good. Most likely will just unwind the short USD/CAD leg and leave the short EUR/USD naked. Will decide when the time comes.
  • Daily : Current uptrend line broken. Should turn back down soon if the long term downtrend is still valid. Its now or never.

2 comments:

Anonymous said...

I was involved in this pair a few days ago on the long side and just got killed. That really put a dent into my account. But I'll be watching it as well - trying to stay neutral.

BH

Taichiseal said...

I have recently seen a few research houses calling for a bottom in USD/CAD. Not sure myself. I need to see an impulsive push above 1.08 to make my mind up on this. Until then, I assume downtrend continuation.