5/27/2010 - USD/CAD - Price action on USD/CAD, a daily chart of which is shown, has retreated substantially after having reached and surpassed key resistance in the 1.0750 price region earlier in the week. Price action on Tuesday (5/25/2010) reached a high of 1.0850, which represented a 7-month high for the pair, before retreating and closing well below the noted 1.0750 key resistance. As of Thursday (5/27/2010), price action has continued its retreat even further, targeting key downside support in the 1.0400 price region once again. Any further significant breakdown below 1.0400 could potentially place the parity (1.0000) target in clear view once again.
James Chen, CMTChief Technical StrategistFX Solutions
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