USD/CAD Retreats From Resistance Level

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USD/CAD Retreats From Resistance Level

By James Chen on June 17, 2009 | More Posts By James Chen | Author's Website

Price action on USD/CAD, a daily chart of which is shown, has just hit and slightly retreated from a critical resistance juncture in the 1.1450 price region on substantial bullishness. This occurs after price broke out cleanly above an accelerated downtrend resistance line extending from the late April swing high. That strong breakout hinted at a potential bullish reversal for this previously very bearish pair. In the event of a substantial breakout above the current 1.1450 price region, the key dynamic resistance target to the upside resides around the original downtrend resistance line extending from the fourth test of the 1.3000 region back in early March. Downside support within the context of the new potential uptrend currently resides in the 1.1300 price region.

(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; 50-period simple moving average in light blue.)

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