Chart of the Week
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Reversal
Fri, Nov 16 2007, 15:12 GMT
by Tatsuya Kawanishi
FXstreet.com
USD/CAD has shown a downtrend line since the start of the year. The Dead Cross clearly confirmed the downward momentum. Expotential Moving Averages of 50 and 200 are drawn in blue and red respectively. Now the pair has shown a sharp reversal after having established a record low at 0.9048. The price at 1.0472 ( Fibonacci Retracement ratio 50%) would be within the target if MACD shows further upward momentum.

USD/CHF also has shown a downtrend line since June. The downtrend line is not likely to end any time soon. The projected line of the downtrend channel (second line) was broken by further downward pressure at the start of November. However, the price at 1.1172 is now seen as a strong support. The pair fluctuates with low volatility just above the support and might get back into the channel from here. Or the pair may show a sharp reversal like USD/CAD.

Published on
Fri, Nov 16 2007, 15:21 GMT
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