Chart of the Day - 1/15/2010 – USD/CAD

1/15/2010 - USD/CAD - Price action on USD/CAD, a daily chart of which is shown, has approached a strong support area in the 1.0200 price region, which represents the long-term 14-month low hit in October 2009. This approach of key support occurs within the context of an overall downtrend in the pair. As of early Friday (1/15/2010) New York session, price has tentatively made a bounce up off this support. Significant upside resistance for this bounce resides around the strong support/resistance area just above the 1.0400 region. On any substantial breakdown below the noted 1.0200 support, a 17-month low will have been established, with the key downside support target residing around parity in the 1.0000 price region.

James Chen, CMTChief Technical StrategistFX Solutions

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