4/14/2010 - USD/CAD - Price action on USD/CAD, a daily chart of which is shown, has finally made a significant tentative breakdown below parity (1.0000), establishing a new 22-month low in the process. This occurs after a prolonged consolidation around parity. The directional bias on USD/CAD continues to be bearish in line with the prevailing long-term, medium-term, and short-term downtrends in the pair. A strong breakdown below parity should confirm a downtrend continuation, potentially targeting key support around the 0.9800 price region. Key upside resistance within the context of the current downtrend continues to reside around the 1.0200 price region, although the region around parity should now serve as tentative upside resistance after the breakdown.
James Chen, CMTChief Technical StrategistFX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.