(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.)
3/23/2009 € USD/CAD € Like other dollar-based pairs, USD/CAD (a daily chart of which is shown) has tentatively entered into a consolidation after the dollar plunge that occurred last week. The drop last week broke down below major uptrend and downtrend support, as shown on the chart, finally retreating back up at a point just above key support in the 1.2100 region. A downward continuation of last week€™s bearishness, in the form of an inverted flag/pennant continuation move, is a potential impending scenario. This, however, would only be confirmed on a clean breakdown below 1.2190, the low of last week€™s move. To the immediate upside, the 1.2400 level should serve as some resistance for the near-term.
James Chen, CMT
Chief Technical Strategist
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