Daily Technical Update May 24, 2010
- Weekly: As mentioned in the latest Weekly Technical Update, I mentioned that the USD/CAD is meeting with resistance, and may see a decline in the short-term. As we take a look at the weekly chart, we can also see intermediate bearish swing.
- If the market stops the rally this week, we may be developing a negative reversal. This signals a swing projection to 0.99, and then possibly 0.96.
- 1H: Going down to the 1H chart, we see the USD/CAD is indeed showing topping action at the 1.07 area. The 1.0650 area went from support to resistance.
- The RSI is still struggling to break below 40. The RSI going below 40 should help confirm topping action. Stronger confirmation is a break below 1.0450, combined with a rally attempt that is accompanied with an RSI that fails to go above 60.
Fan Yang Currency Analyst Commodity Trading Advisor