The 1H USD/CAD chart shows a market maintaining the bearish stance. Price action broke below last week’s consolidation rising trendline. The moving averages are in bearish alignment with the 200-hour SMA on top going down to the 8-hour SMA at the bottom closest to price action. The RSI reading continues to hold below 60, reflecting persistent bearish momentum.
A swing projection targets 0.9830. As the market digs lower, we should monitor the 0.98-0.9830 area for support. The 0.98 level was the 2012-low, and support pivot from which a rally to 1.0445 developed through the month of May. Also the Daily RSI will be below 30, showing at least oversold condition for the very short-term.
USD/CAD Daily Chart 8/21/2012 9:58AM EDT