USD/CAD Retracements Over The Last 7 Months

The USD/CAD pair had fallen off over 550 pips at one point yesterday from just Monday morning. This is an extraordinary move without any concrete news or directly correlated data to explain this shift. It could however be an overdone correction, on a the low volume appreciation for the pair in June.

If that is the case the Bollinger Bands support illustrated below throughout 2009 suggests a correction over the next week is in order and could be anywhere from 3% to 7% based on what has occurred over the course of this year when the pair has penetrated the Band.

Note the appreciation and time frame for the pair the last 6 times since December after the band has been broken.

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