Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

USD/CAD Technical Outlook - 1

|Includes:CurrencyShares Canadian Dollar Trust ETF (FXC)

A bullish AB=CD pattern has formed on the lower band of the 50% pitchfork. It is reasonable for traders to liquidate their long positions and, provided we get a trigger, initiate short positions.

It should be noted that the heavy selling pressure witnessed after FOMC statement release makes the bulls cautious in moving forward, but if this selling atmosphere begins to fade, bulls will be encouraged to enter the market.

Therefore, as long as the 1.0135 support holds the bears at bay, the traders can seek buy signals targeting 1.035 and then 1.05 levels.

Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in FXC over the next 72 hours.

Stocks: FXC