Chart of the Day

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)

8/04/2008 – USD/CAD – As noted on a previous Chart of the Day a week ago, price on the USD/CAD daily chart, as shown, was on the brink of breaking out above a long-term downtrend resistance line (in red). Price subsequently ended up breaking above this line and has now reached major resistance around the 1.0350 horizontal support/resistance level (the top yellow line). At this point, oscillators are indicating well overbought. But in the event of any continued move up, breaking this horizontal resistance, price should target further resistance around the 1.0470 region, which is another horizontal support/resistance level to the upside. A turn back down at or near the current horizontal resistance, on the other hand, should target support back down at the red downtrend line.

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Published On Mon, Aug 4 2008, 16:29 GMT

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