USD/CAD Near Critical Support Within Downtrend

By dropping down to 1.0650 and approaching strong support in the process, price action on USD/CAD, a daily chart of which is shown, is close to confirming an overall downtrend continuation. This downtrend has been in place since the March high just above 1.3000. Currently, if price breaks down below the 1.0630 support region, which represents a 10-month low and the lowest low in the current downtrend, the downtrend continuation will have been confirmed. In this event, a key downside target resides first in the 1.0400 support region, and then in the key 1.0300 support region. Within the context of the current downtrend, dynamic resistance to the upside continues to reside in the region of the long-term downtrend resistance line extending from the March high.

(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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