The USD.CAD has been a typical counter-trend pattern. In my last post (June 5th) I mentioned that the break in the steep downtrend line has provided a high-probablity potential for quick profits.
The chart below shows the same chart parameters and trendlines as the one posted on June 5th but now more of the trend is revealed as time has passed.
Let's take a closer look with the hourly breakdown:
Some of the support and resistance lines which were drawn on June 5th have held up very well - the local support at 1.0955 has be retested 3 times since.
I have drawn a new trendline to capture the recent move to the upside. It isn't a distinct and confirmed trendline but as a technical analyst it is in my nature to start trying to define new trends...
For those of you still long the USD vs. CAD to capture more profits, remember that this is a counter-trend trade. The general trend is still to the downside. Use smart stops to limit downside moves.
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