Sticking to your Guns

The Recent Strength in the Canadian Dollar 

*enlarge these images to see it fully 

I posted this previously.  I thought the USD/CAD would retrace a major chunk of the zone and that it was a good time to get long the CaD.  Well here is the result of the trade.

The Daily Chart 

• Sunday's action should probably be considered meek, because of the natural tendency to bounce back without many market participants
• There are still another 25-50 pips left in the zone we created 

The 4-Hour Chart

• Attempt for the buyers to reclaim a majority of the losses created on the long red candle created at 9AM - it was 95 pips in magnitude
• This segment of time is more of a display of the range where equilibrium is more of a middle-ground between 1.32 and 1.3215, I believe it can climb that much possible before resuming the last bits of the slide 

The 60-minute chart

• More detail on the way it consolidates
• On the most recent set of declines it typically consolidated a few times before making the next swing down
• This could be a set-up for a false flag which means the buyers are signalling a rally when in fact they don't have enough strength to lift it much higher than 1.32

Our ultimate target in this whole test of CaD strength is for the USD/CAD pair to hit 1.30887 but of course we are open minded to as much dollar weakness as possible.