(Chart courtesy of FX Solutions' FX AccuCharts. 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.
James Chen, CMT
Chief Technical Strategist
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