CAD - Back to basics

Good Evening / Morning Dynamic Traders

"Better to have tried and failed, than not tried at all"

Cross = CAD : Monthly & 60min Chart (Posted Below)

For trend refer to http://www.dynamictraderblog.com/

With the early gains removed later in the day, I wanted to get a deeper insight as to what has or is happening to the CAD, so I went back to basics and looked at the bigger picture.

The monthly chart shows we have been in a down trend since August 2002 and if a measurement is taken to the low November 2007, we are sat at a prominent breather level. If we were to throw in the RN and the VI and the Advanced Get Elliot Elipse then we got a interesting cocktail of events. With the resistance, the RN and a trend line drawn over the last 6 months, stochastic s looking to roll over, RSI double topping, are we due a break down ?















So lets look closer, remembering the strength from above, the 60 mins chart.
The VI is again playing a key role with the price as resistance, 3 times it has tried to break through and 3 times being beaten back. RSI is showing divergence with the 3 recent highs, showing a potential for price to pull back. With a distorted Head & Shoulders on show, will price fall back to the MOB indicated on chart ?















So there we have it, if the force is with us, long and short say down.

Do your own analysis before placing a trade, use a stop and check the news items.


Courtesy of Advanced Get / E Signal

Trade with Passion

John Maher
Forex Analyst



Follow our other blogs
http://www.fxcps.eu/
http://www.fxcps.co.uk/blog
http://www.fxcps.com/blog/