Canadian Dollar (CAD) Technical Major Currencies (2009-09-23)

on September 23 2009 1:53 AM

Morning Report

Trading maintained levels below the previously breached key support at 1.0715 yesterday, where we see a support level at 1.0655; representing the neckline of a bearish technical pattern, seen in the image above. From here we expect the pair to decline on the intraday basis today, confirmed with a four hour closing below the neckline with technical targets for the pattern at 1.0465. The stochastic indicator is showing the pair being oversold, which may result in volatile trading around the neckline, yet the short term trend remains to the downside as far as 1.0820 is intact.

The trading range for today is among the key support at 1.0425 and the key resistance at 1.0900

The general trend is to the downside as far as 1.1870 remains intact with targets at 1.0300

Support1.06551.06251.05651.05001.0420Resistance1.07151.07501.07951.08451.0885RecommendationBased on the charts and explanations above, our opinion is selling the pair with the breach of 1.0655 to 1.0500 and stop loss above 1.0750 might be appropriate.

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