August 2, 2013 (2:31 pm) – The USDCAD pair has recently broken out from an inverted head and shoulders (inverted kilroy) or a rounding bottom pattern as seen in its 1-hour chart. The pair has hit a high of around 1.0360 after moving above its neckline resistance at 1.0320. Now if the Canadian dollar temporarily rallies against the US dollar and sends the pair down, its likely that it may see some support at its previous resistance at 1.0320. Personally, we would be looking to place a long entry following a correction around this level. If this happens then the loonie may weaken again which would send the pair to its target of at least 1.0380 as gauged by the height of the pattern. However, a fall below 1.0320 may nullify that potential and send the pair down perhaps to around 1.0260.
Trading Edge Consultancy holds stock trading classes and forex trading courses for investing in the Philippine stock market. Trade and invest in the stock market with our courses and expert advice. Learn more.