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December 10 – USD/CAD – Long-term downtrend

December 10, 2009 at 8:56 am • Posted in USDCAD

USD/CAD Daily Chart - December 10

(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.)

12/10/2009 – USD/CAD – Currently stuck in a short-term trading range consolidation, price action on USD/CAD (a daily chart of which is shown) is in the midst of a gently-sloped medium-term downtrend within the context of a long-term downtrend.

The general directional bias on this currency pair continues to be bearish.

Significant downside support resides around the key 1.0400 price level, the bottom of the current short-term trading range. Any breakdown below this level, in line with a continuation of downtrend bearishness, should target further support in the 1.0200 price region.

This latter level represents the 14-month low for the pair that was last approached in mid-October. Dynamic upside resistance continues to reside around the medium-term downtrend resistance line that has been in effect since at least August.

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