Chart of the Day
USD/CAD Daily Chart — September 25, 2009
By
James Chen
, Published:
9/25/2009
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; 50-period simple moving average in light blue.)
9/25/2009 – USD/CAD – After forming the potential beginnings of a double-bottom pattern, price action on USD/CAD, a daily chart of which is shown, has risen to make a tentative breakout above a key downtrend resistance line extending from the 1.3060 long-term high reached in March. Currently, a key upside resistance level to watch for is the 1.1120 price region, which represents the rough peak of the potential double-bottom formation. Any strong breakout above this level could presage a major bullish reversal, or at least a potential end to the current prevailing downtrend, and could subsequently target further key resistance in the 1.1450 price region. Likely, however, the current consolidation should continue, at least for the near-term. In this event, range resistance resides around the noted double-bottom peak, while strong range support continues to reside around the level of the double-bottom lows.
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James Chen, CMT
Chief Technical Strategist,
FX Solutions
Chief Technical Strategist,
FX Solutions
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