Usd / Cad Update:

[RTFX-Trading]

[B][I][U]USD / CAD UPDATE:[/U][/I][/B]

[B][I]Possibility of a Change of Trend in USD / CAD??[/I][/B]

With the formation of a bullish ‘Morning Star’ candlestick at the support line marked by the mid-line of a falling channel set from the swing top in February to April lows, suggests that USD / CAD may be positioning for a reversal. The bounce on the lower band of a Bollinger indicator on the 7th of April and heavy divergence indicated on the RSI (14) on the daily chart further support our view.

We will look for confirmation on a break above the channel top now at 1.0131 to enter a long position. While a break of the mid-line of the falling channel would pave the way for further declines towards the lower channel line. A break of this support would further strengthen Bearish sentiment and lead price action towards historical lows!

[IMG]http://www.rtfx.com/images/news/USDCAD09.04.gif[/IMG]

Emman Xuereb
Trading Desk
RTFX Ltd
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