Chart of the Day
USD/CAD Daily Chart — March 12, 2010
By
James Chen
, Published:
03/12/2010
(Price on 1st pane, Slow Stochastics on 2nd 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.)
3/12/2010 – USD/CAD – Bearish price action on USD/CAD, a daily chart of which is shown, has finally made a tentative breakdown below the key 1.0200 support level after respecting this level several times this week. Friday’s (3/12/2010) breakdown of 1.0200 establishes a new 19-month low for this pair. The current bearishness puts USD/CAD on a potential path towards parity (1.0000), a level not reached since July 2008. The current bearish breakdown also lends confirmation to a potential continuation of the overall downtrend in the pair that has essentially prevailed for almost exactly a year. With the 1.0000 price region being the key downside target as noted, upside resistance within the context of the continuing downtrend now resides around 1.0200 (where this level was previously support before breakdown). In the event that there is a re-break back above this level, further upside resistance resides in the key 1.0400 price region.
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James Chen, CMT
Chief Technical Strategist,
FX Solutions
Chief Technical Strategist,
FX Solutions
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