Chart of the Day

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(Chart courtesy of FX Solutions' FX AccuCharts. 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.)

9/09/2010 – USD/CAD – Price action on USD/CAD (a 4-hour chart of which is shown) as of Thursday (9/09/2010) has dropped down to hit key support in the 1.0300 price region on continued bearishness off a swift drop from the 1.0500 area resistance. This occurs within the context of a prolonged horizontal trading range consolidation that has characterized this currency pair since the last quarter of 2009. Currently just above critical support and having established a new 3-week low, if USD/CAD makes a strong breakdown below the noted 1.0300 region, price should meet immediate downside support in the 1.0250 area, followed by a potential downside targeting of the key 1.0100 support region, which represents the region of the last major low in early August.

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Published On Thu, Sep 9 2010, 16:21 GMT

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