Forex Trading Technical Analysis (2010/07/30) USD/CAD Hits Triangle Bottom
(Please click on the forex chart thumbnail to enlarge)
7/30/2010 Forex Trading Technical Analysis (FXpath.com) – USD/CAD (a daily chart of which is shown) as of Friday (7/30/2010) has once again hit the bottom of a large triangle consolidation pattern after having traded just below key 1.0400 resistance for the entire week. This large triangle occurs within the context of a prolonged sideways trading range consolidation that has been in place since late 2009. In the event of a break to the downside below this triangle, price should meet immediate downside support in the 1.0200 price region, followed by further downside support in the 1.0100 price region on further bearish momentum off a potential triangle breakdown.
UPDATE: AS OF MONDAY (8/02/2010) MORNING, PRICE ACTION HAS CLOSELY APPROACHED ITS FIRST DOWNSIDE TARGET OF 1.0200 ON THE TRIANGLE BREAKDOWN.
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
James Chen, CTA, CMT (bio)
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Related posts:
- Forex Trading Technical Analysis (2010/07/28) USD/CAD in Large Triangle Consolidation
- Forex Trading Technical Analysis (2010/08/05) USD/CAD Breaks Down Further Off Triangle
- Forex Trading Technical Analysis (2010/08/26) AUD/JPY Forms Clear Triangle
- Forex Trading Technical Analysis (2010/08/23) EUR/JPY Breaks Down Further off Triangle
- Forex Trading Technical Analysis (2010/08/18) EUR/JPY Forms Descending Triangle
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