Swing Technicals- USD/CAD Short Opportunity at 1.0300

Friday, December 30, 2011, 5:32 PM

December 30, 2011

CURRENCYCURRENT BIASPOTENTIAL STRATEGY
EUR/USD (Medium Term)
Watch for a new opportunity that would allow us to go short near the bearish trend line.
GBP/USD (Medium Term)
Watch for a new opportunity to emerge.
USD/JPY (Medium Term)
Watch for a new opportunity to emerge.
USD/CHF (Medium Term)
USD/CHF trade idea (long from 0.9397) has reached our profit target; watch for a new setup to emerge.
USD/CAD (Medium Term)
Sell USD/CAD at 1.0300. Stop at 1.0331. Profit target at 1.0253.
AUD/USD (Medium Term)
Watch for a new opportunity to emerge.
NZD/USD (Medium Term)
Watch for an opportunity to emerge.
EUR/USD (Swing Forecast)
Potential Strategy
Watch for a new opportunity that would allow us to go short near the bearish trend line.
What is the trend?Down
What is this pattern?No pattern present - See all chart patterns
Why is this significant?There is no high probability pattern so we cannot place a trade.
What other indicators or Fib Levels support this thesis?No trade.
Reason for Strategy
The triangle on the EUR/USD 4hr Chart has broken due to a sharp drop. However, the bearish trend line is still intact, and we will now watch for bearish patterns to form that would allow us to go short near the trend line. Otherwise, we are still testing potential support at 61.8% of YZ on the Weekly Chart.
Trade Invalidation
No trade.
Support & Resistance Levels
Resistance 3N/AN/A
Resistance 2N/AN/A
Resistance 1Bearish trend lineSee 4hr Chart
Current Price1.2958
Support 11.304661.8% of YZ on the Weekly Chart
Support 21.253278.6% of YZ on the Weekly Chart
Support 31.1876100% of YZ on the Weekly Chart

Weekly Chart - 61.8% of YZ could still provide strong support.
4hr Chart - Triangle has broken; focus is now on the bearish trend line.
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