USDCAD—possible short

On the hourly and 15-minute chart, you can see USDCAD coiling inside a triangle. After a decline, this hints at further drops. I'm studying taking a short since it's at the top of the triangle. Caution is critical (that means tight stops above 1.02) because there are pairs that normally move inversely to this one showing weakness. If it breaks below the triangle, the target is 1.0134. Not a great move but on the other hand if the pair does break below, there could be further drops back to parity.

Here's the 15-minute chart:























© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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