Forex Technical
USDCAD boxed in an old Range
May 11, 2010
Gary Fichardt - FxBigDog
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Chart Analysis
Looking on the USDCAD daily, traders are seeing the pair back into a range it held in weeks ago. The support then was 1.0225.
In last week we noticed the break back above this level and after hitting the top of the range, its has fallen back to the support area. Today's close with a hammer could indicate bullish sentiment in the market and push this pair back to 1.0779
With the USDCAD failing to stay below the congestion area, could well mean a break above 1.0779 plus more.
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Analysis
In our article regarding support and resistance we talk about how indecision candles can help with confirmation where support and resistance is find. On the USDCAD daily chart, this is prime example of how to find those areas.
Although the market is showing a down Intermediate swing, there is a high probability that the pair is looking for higher price action based on what trader are reading on the daily chart.
It is very important not to turn a blind eye to the signs that are there for us to make informed decision on. A lot of traders are married to their trades and regardless of what the market is telling them, they don't listen, but pay the price.
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