USDCAD—monthly chart

One can make a case on the USDCAD monthly chart for a potential wave up from the .9931 low especially since April formed a hammer on the monthly chart and provided a touch for a trendline up from the '07 low. If I assume for a moment that this will be the start of wave three then I can project prices getting beyond the 1.3065 '09 high so a long position could prove very profitable. But how long it would take? Aye, that's the question and of course it wouldn't be a straight upward shot. Still, as a long-term trade the possibility exists, that is if you believe in Elliott wave theory.

Support on the shorter-term charts is relatively close by at 1.0112, 1.0012 and .9931. Resistance is at 1.0184, 1.0215, 1.0304 and 1.0681.

Here's the monthly 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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