USDCAD trend reversal?

Technically the USD index weekly chart has put in a bottom. We have had a break in the downtrend line. A breakout above that downtrend line. We also are completing what looks like a deep pullback which appears to be forming a higher low. The classic 1,2,3 chart formation. If we have a Friday close north of the 75.00 level we would have a bullish tone to the index. If close at 75.00 level then the market is slightly undecided about the further direction pending more data out of Europe.
At or above 75.00 is still a weekly gain.

Have a great weekend

I won’t trade USD/CAD for the next 1-2 weeks.

http://lcchong.files.wordpress.com/2...ng?w=877&h=398

http://lcchong.files.wordpress.com/2...ng?w=877&h=397

i am bullish on this pair. Same weekly chart. Price above the 13sma. macd turned up. divergence at the bottom. reversal candles. As you said shame about the doji but i dont think we will break to new lows so risk is limited and known (??)

Olu

Dly: $ sl< prev supp 9825 ( Feb 17-22)
$ @ upper BB & unable to break > consolidation upper range 98ish (May 20-June 17).
STO heading down & MacD down (but > H2o).

Short term sell to 9700 ( low BB)
That is my T7A trade thought.

Devil's advocate trade:

As FOTO astutely points out; Wly USDX may have bottomed.
Depends on Greece info & what Euro does (the down TL on U/Cad Mar 15- June 3 9830 is key level I'm watching). If break up. then buying.

Too many many long up & low wicks this week. Scalp 20-30 pips each way for me is my thought. ( Does this make me bi-tradual?).

Overall thought is US$, Swissy & Yen will get stronger as conditions globally deteriorate.

OLU: great post & beauty chart. You took a stand & supported it.

Personally,I'd like next week to close > last week's high 9900 approx. before I take a bull position.( Just my thoughts though; & your post awa clc's give me further info in order to make a more probable & fruitful decision. Thanks)

May the Pip Gods smile on your trades

FOTO: TOO TRUE & thank you again for your perspective views. I shall trade accordingly.

May I ask a favour? I am not familiar with "debt repeal" & would you expand this idea to me? Thanks.

My parents & grandparents throughout my formative years,implanted in my brain, the thought process " that if you cannot pay cash for something, then you don't need it!" In other words; I have NO Debt ( other than paying the taxes, utilities, etc for living WITHIN MY MEANS) so DEBT & DEBT REPEAL are foreign to me. If you have the time to explain this to me, I would greatly appreciate it.

Long UC @ 0.9820 target 0.99
S

Took a Short @ 0.9829.

Overall I see the Pair going up in the coming weeks. For right now ..... I guess you can just call this one a scalp.

I'm out.

We may be very close to history being made in Europe.
The bailout is no longer a sure thing as it is not just Greece. All the periperhal countries using the common currency need to take a hard look at how sustainable debt loads are and if there is a light at the end of the tunnel.
Then make decision over cost benefit for continuation of the status quo versus domestic upheaval and social instability caused by perpetual depression that would ensue.

Debt repeal in this mind is simply a political decision of a sovereign nation to not pay any more on past debt. It happened often in South America in past decades. Unless lenders have an invading army to enforce debt collection the money is simply gone.

Iceland went its own way and just a few years down the road is starting back. When McArthur was put in charge of the war torn Phillipines he went to the gold standard. it forced discipline on the economy and the Phillipines came back.

In Europe there is no talk of a way back it is just buying time, looking for world economic growth to rise all boats. If world growth and good times do not materialize, the strategy fails.

FOTO: Yesterday,I was reading in the "porcelain library"and there was a quote in the novel chosen for that time.

Today, I read your informative post & there was such a coincidence that could not be ignored.

Your post included D. MacArthur & the gold standard.

The quote in the book (should you require verification PM & I'll give the specifics) follows:

(emphasis is mine)

" Let civilian voices argue the merits or demerits of our processes of government. Whether our strength is being sapped by DEFICIT financing indulged in TOO long, by federal PATERNALISM grown TOO mighty, by power groups grown TOO arrogant,by POLITICS grown TOO corrupt,by crime grown TOO rampant,by MORALS grown TOO LOW,by TAXES grown TOO high,by extremists grown TOO VIOLENT,whether our PERSONAL liberties are as firm and complete as they SHOULD BE......."

That speech was given....'52

I felt it was worth reading & re-reading.

As a follow up to USD/CAD–Some Updates (18 June 2011), looks like USD/CAD really loss steam.

http://lcchong.files.wordpress.com/2...ng?w=877&h=397

Up..

Agree

now , I have not like your idea...
In my chart I can see a ress on 0.9685 ! so I know that the price can tuch 0.9700 and then we should wait for some price actions...
please let me too upload my chart
be carefull if you want to trade for fly
Regards.

Nice post Scarecru,
Democracy will only survive if the political elite is held accountable.
For America 2012 will be a bread and butter campaign.
These Central banks have too much power, but the ignorance of the bulk of population about what is happening leaves much to be explained.
As traders all we can focus on is to make money and leave the moral judgments to others.

Today's vote in Greece, so what. They still are underwater and piling on more debt. Greece is containable, but Germany will be where the rebellion and ultimate fracture of the Euro will come from.

Germans that I have been privileged to know are a pretty frugal folk. That also have the strong Lutheran work ethic.
They do not take kindly to paying someone else's fair. Europe is still on the brink if economic growth remains stifled. Today's German ZEW was not promising.

The US ???? Who knows any more. The boy who would be King does not know up from down.

May be time to just take a long fishing trip.

Regards

Or milk some forex money out of those banks

[quote=foto;4713722]Nice post Scarecru,
Democracy will only survive if the political elite is held accountable.

As in a grandfather clock- the pendulum swings from the extreme left back towards the right.
CONTRARIAN trading?

FOMC should might maybe give some direction.

Stay well my friend.

I would expect some consolidation, coz usd/cad could not break 0.99
and made a sharp U-turn

gl!