Daily Technical Update
May 13, 2010

USD/CAD Stalking 2nd Rally Swing




1H: This morning’s update on this pair was titled: USD/CAD eyes 1.0060. 2 hours after the post, the market rallied instead. Here, despite the heavy bearish candlestick that gave us the bearish signal, I noted that the market needed a “break below 1.0140″.
It should be clear that when I said break, I meant close, but I will be more clear in the future. In anycase, here, the market attempted to close below, but failed to, the 61.8% retracement area. Remember, if your signal is a close of something, make sure to wait until the candle closes.
So a rally followed, and if it is an AB=CD kind of retracement developing, we may see resistance coming up very soon, near 1.0210. If a decline indeed materializes after this correction pattern, the projection is no longer to 1.0060, but 1.0080.
Fan Yang
Currency Analyst
Commodity Trading Advisor

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