Forex: USD/CAD in double bottom territory at 1.02 area

By IBTimes Staff Reporter | January 15 2010 5:21 AM

FXstreet.com (Barcelona) - The Dollar has been deprecating steadily against its Canadian counterpart, dropping from levels at 1.0850 in October to levels right above 1.02 -Oct 15 low), where, according to Peter Ruud, technical analyst at Informa Global Markets, the pair could find support to pick up during coming weeks.

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The USD/CAD's 20-week MA has steadily provided resistance since late 2009. The December 30th lower high rejected at the 20-day MA to signal the end of the consolidative recovery. This week's struggle at the 10-day MA has triggered further weakness that marks a fresh 3-month low, says Ruud.

Nevertheless, Ruud affirms that daily and weekly studies show the possibility of a rebound from 1.02 region: Diverging daily & weekly studies, however, support the possibility of a rebound near or just below obvious support in the 1.02 region (October 2009 low). The falling 10-day MA (now at 1.0361) will be the first obstacle in determining whether the USD/CAD can recover.

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