Forex USD-CAD Technical Analysis

It was a long bearish trend since 5 years ago (2003), the pair has been moving downwards relentlessly and pushing for excessive oversold in December 2007. At that time everyone must be thinking it will not be going up anytime soon as the pair generally moving in flat direction for at least 10 months in the year 2008. It is a long time to wait and many traders have already forget their analysis and expectation of this pair.

As of today after 10 months later (October 2009) since January 2008 suddenly we are now witnessing that long awaiting expectation for a shift of power from the bear to the bull. However we still cannot confirmed a continuous trend because this is only the first move. Until the monthly slow stochastic is moving upwards for the second time after correction then we can confirmed the bull is taking full control of the situation.

At it current position (see picture) actually it is simply overbought, therefore we may expect a small correction to take place before continuation.

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