Wednesday, January 7, 2009

Potential channel breakout on the AUDCAD

The AUDCAD is currently setting up in a very nice uptrend channel which started towards the end of November at around the 0.7900 levels and is currently trading at the 0.8500 levels.



In the best channel break situations you would want an uptrend channel to be broken down and a downtrend channel to be broken up. In this situation we are dealing with an uptrend channel which is close to being broken at around the 0.8400 levels. If the break is to take place and we break below .8400, we can look at various take profit targets and areas to add to our positions. Those could be setup by using Fibonacci numbers as a guide drawn from the bottom of the spike on Oct 10th, 2008 and the latest high from January 5th, 2009. The targets would be 0.8320, 0.8097, 0.7912, and 0.7741. Let's monitor the situation tonight and over the next couple of days to see what happens.
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