USD/CAD Tentative Trendline Break

Price action on USD/CAD, a daily chart of which is shown, has tentatively poked out above a key downtrend resistance line extending from the fourth test of the 1.30 price region back in March. This tentative break places the current downtrend in potential jeopardy, as this trendline has helped define a strong downtrend for more than three months. With any substantial follow-through on this potential bullish breakout, the next major resistance target to the upside resides around the key 1.1800 price region. In the event of a false break scenario, where price retreats back below the trendline, strong support continues to reside in the 1.450 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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