The USDCAD downward movement extended to 0.98898 at the close of the week's trading on Friday August 17, 2012.
The pair's break through the ichimoku cloud and support level of 1.00995 on the daily chart signified the bearish move. The 20 and 50 period exponential moving averages confirm that the pair is now in a down trend position.
An analysis of the Hurst Exponent reveals a 52.52% probability of persistence i.e. the time series is trending and there is a 52.52% change of the trend continuing.
The pair bounced off a support region around the 0.98467 level on the last day of trading. This rebound could signify a pull-back to the moving averages for a continued move down.
A break of the support level around the 0.98467 region could mean a further extension of the pair to as far as 0.94390, a 410 pip move.
Opportunities to short the pair on smaller time frames once support is broken could yield some profits riding the trend to the projected target. Confirmation to keep trades open would be sought from further increases in the Hurst Exponent, indicating persistence from the move.
The pair's break through the ichimoku cloud and support level of 1.00995 on the daily chart signified the bearish move. The 20 and 50 period exponential moving averages confirm that the pair is now in a down trend position.
An analysis of the Hurst Exponent reveals a 52.52% probability of persistence i.e. the time series is trending and there is a 52.52% change of the trend continuing.
The pair bounced off a support region around the 0.98467 level on the last day of trading. This rebound could signify a pull-back to the moving averages for a continued move down.
A break of the support level around the 0.98467 region could mean a further extension of the pair to as far as 0.94390, a 410 pip move.
Opportunities to short the pair on smaller time frames once support is broken could yield some profits riding the trend to the projected target. Confirmation to keep trades open would be sought from further increases in the Hurst Exponent, indicating persistence from the move.
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