USD/CAD Approaching Support on Daily Chart
06/15/2010 12:01 am EST
Price action on USD/CAD, a daily chart of which is shown, has once again approached support in the 1.0200 price region.
(Price on first pane, Slow Stochastics on second pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
This occurs after price broke down below an uptrend support line extending from the late-April long-term low below parity (1.0000). The past week and the beginning of the current trading week have seen substantial bearishness in this currency pair.
A breakdown below the key 1.0200 support level could signal further bearishness for USD/CAD, potentially targeting parity once again. Key upside resistance within the context of the current bearishness currently resides in the 1.0400 price region.
By James Chen, chief technical strategist, FXSolutions.com