An Interesting Chart
Posted 11-02-2009 at 04:25 PM by fxKnight.com
An Interesting Chart- The USD/CAD Weekly
Andrei Pehar, Chief currency Strategist, fxKnight.com
We've got a great Fibonacci pattern here, with divergence as well. The first time we bounced up the resistance held. Price touched the envelope and bounced up again after hitting the 127% extension at 1.0166 as well.
We are once again moving up. The 21 EMA is on it's way to meet us at the 0% Fib at 1.0782 where a third divergence forming as well.
What happens next will depend on whether this level holds as resistance or breaks and becomes our new support. If it holds as resistance, we could possibly move back down to 1.0372, and 1.0166 after that. The ultimate downside of this Fib is at 0.9911 – but that’s an extremely long-term scenario, if it comes to pass.
If the 1.0782 instead holds as support, we'll likely range for a while between 1.0782 and 1.1115. If we break above 1.1115 , then we will likely go to 1.1653 – with 1.1320 as resistance along the way.
Andrei Pehar, Chief currency Strategist, fxKnight.com
We've got a great Fibonacci pattern here, with divergence as well. The first time we bounced up the resistance held. Price touched the envelope and bounced up again after hitting the 127% extension at 1.0166 as well.
We are once again moving up. The 21 EMA is on it's way to meet us at the 0% Fib at 1.0782 where a third divergence forming as well.
What happens next will depend on whether this level holds as resistance or breaks and becomes our new support. If it holds as resistance, we could possibly move back down to 1.0372, and 1.0166 after that. The ultimate downside of this Fib is at 0.9911 – but that’s an extremely long-term scenario, if it comes to pass.
If the 1.0782 instead holds as support, we'll likely range for a while between 1.0782 and 1.1115. If we break above 1.1115 , then we will likely go to 1.1653 – with 1.1320 as resistance along the way.
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Andrei Pehar, Sr. Currency Strategist, fxKnight.com
Andrei is a private fund manager, consultant to management, and a sought-after speaker and coach for professional traders and individual investors alike. At a young age he was already playing in professional chess tournaments, and went on to further hone his strategic skills through years spent studying Japanese martial arts. From both worlds, he brings with him a unique perspective to the financial markets.
His client list includes prestigious names such as UBS, Tower Asset Management (named by Bloomberg as top asset manager), Clifford Associates (investment counselors since 1915, officially acknowledged as the oldest in the United States), and several other high profile firms specializing in investment and wealth management for musical artists, sports celebrities, and other ultra high net worth individuals and trusts.
Andrei is a regular contributor to BabyPips, DailyFX, and FXStreet. He is currently working on a book which will, for the first time, introduce retail traders to institutional trading strategies and techniques. His site fxKnight.com provides free tools and strategies for professional traders and individual investors (including live chat, strategy forums, training videos, worldwide market news, and streaming ForexTV).
Click Here to view videos by fxKnight
Andrei is a private fund manager, consultant to management, and a sought-after speaker and coach for professional traders and individual investors alike. At a young age he was already playing in professional chess tournaments, and went on to further hone his strategic skills through years spent studying Japanese martial arts. From both worlds, he brings with him a unique perspective to the financial markets.
His client list includes prestigious names such as UBS, Tower Asset Management (named by Bloomberg as top asset manager), Clifford Associates (investment counselors since 1915, officially acknowledged as the oldest in the United States), and several other high profile firms specializing in investment and wealth management for musical artists, sports celebrities, and other ultra high net worth individuals and trusts.
Andrei is a regular contributor to BabyPips, DailyFX, and FXStreet. He is currently working on a book which will, for the first time, introduce retail traders to institutional trading strategies and techniques. His site fxKnight.com provides free tools and strategies for professional traders and individual investors (including live chat, strategy forums, training videos, worldwide market news, and streaming ForexTV).
Click Here to view videos by fxKnight
