Canadian Dollar (CAD) Technical Major Currencies (2010-08-26)

The pair succeeded in achieving the awaited ascend yesterday nearing the awaited target by 10 points around 1.0675, although it did not hold enough momentum to build a base above support for the bullish channel shown above. Trading reversed to the downside as a bearish technical pattern appears and its neckline at 1.0555, thus making us expect a bearish intraday direction and supported by its being belowSMA 50. We point out that achieving the expected bearish direction essentially requires a clear breach of the mentioned neckline to pave the way towards 1.0445 as a primary target. Keep in mind that the breach of 1.0625 will cause this bearish trend to fail and make the pair return within the bullish channel once again.

The trading range for today is among the key support at 1.0425 and the key resistance at 1.0645.

The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.

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Weekly Report

Support1.05551.04951.04251.04001.0345Resistance1.05801.06251.06751.07451.0825RecommendationBased on the charts and explanations above our opinion is selling the pair with the breach of 1.0555 targeting 1.0445 and stop loss above 1.0640, might be appropriate.