Monday, February 16, 2009

USD/CAD Daily Charts - Breakout from Triangle expected

This is the USD-CAD Daily chart. I have marked out the triangle developing since October. Now
this has been in the making for over 4 months now. A breakout should happen this week or at most next week. The resulting move should be pretty large and the last leg of this major move. Greater probability is for breakout to happen on upper side as triangles are known to be continuation patterns. Further recent fundamental data seems to support the bearish view for the canadian economy. Not only that for proponents of elliot wave analysis, the wave count suggests that the triangle was a fourth wave consolidation & we should see a 5th & final wave in the form of an upmove.

Wait for the move & take a position in the direction of the move.