(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; chart patterns in white; 50-period simple moving average in light blue.)
4/08/2010 - USD/CAD - Price action on USD/CAD, a daily chart of which is shown, reached parity (1.0000) this week, establishing a new 20-month low in the process. After dipping slightly below parity earlier this week, price has since consolidated right around this key level. This occurs within the context of a long-term, medium-term, and short-term downtrend in the pair. With further bearishness in this pair and continued Canadian dollar strength likely, parity could soon be broken significantly to the downside. In this event, a key downside support target resides around the 0.9800 price region. If another bullish retracement/correction occurs within the context of the current overall downtrend, key upside resistance resides around the 1.0200 price region.
James Chen, CMT
Chief Technical Strategist
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