(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.)
4/14/2010 - 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, CMT
Chief Technical Strategist
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