Forex Trading: USD.CAD further upside to come?

by Joe Oliver, Forex Trading-Pips

Forex Trading: USD.CAD weekly squeeze has fired off long after consolidating for the past 2 months. The squeeze, identified by red dots on the squeeze histogram, indicates contracting volatility. Contractions in volatility typically precede a breakout move. Last weeks inside week bar (pink bar) further raises the possibility of a breakout move this week on USD.CAD. A close above parity would complete a double bottom basing pattern and open the door for decent upside gains in USD as shorts are squeezed out of the market.

Forex Trading, CAD weekly Squeeze

Forex Trading, CAD weekly Squeeze

 

 

 

 

 

 

 

Forex Trading: Euro currency continues to trade in weekly squeeze against USD as volatility has contracted in the pair over the past few weeks. Investors concerned  about both Euro zone and US debt have been reluctant to make large directional bets on the pair.

Forex Trading, EUR weekly Squeeze

Forex Trading, EUR weekly Squeeze

 

 

 

 

 

 

 

Forex Trading: Japanese yen put in new record highs versus USD Friday as investors continue to shun risk and seek safe haven in Gold, Yen and Treasuries. Although further intervention in Japanese yen remains a possibility the pair continues to trade in a sustained long term downtrend with each counter trend rally being sold into.

Forex Trading, JPY weekly bars

Forex Trading, JPY weekly bars