April 19 – USD/CAD – Bullish correction
(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.)
4/19/2010 – USD/CAD – Price action on USD/CAD, a daily chart of which is shown, has made a bullish correction up to the 1.0200 resistance price region before retreating as of Monday (4/19/2010).
This correction occurs within the context of a strong downtrend and after a 22-month low below parity was hit mid-week last week. As long as price action stays (closes) below this key 1.0200 price region, the technical bias for this currency pair continues to be bearish in line with the overall downtrend. The most important downside level to watch continues to be parity (1.0000), a re-break below which price could continue the downtrend, potentially targeting further downside support in the 0.9800 price region.
In the event of a significant breakout and close above the noted 1.0200 level, the current downtrend could be placed at risk, with key further resistance to the upside residing in the 1.0400 price region.