USD/CAD Daily Chart 10:10AM EDT 10/29/2012
Trendline break: There is a trendline projected from the 1.0441 high from June 1. This week starts (10/29) with a break above this trendline, which started last Friday (10/26). The RSI reading also broke above 60, a sign that the bearish momentum from the downswing since June is lost.
Targets: The breakout exposes the 2012 high of 1.0441. But a more conservative target would be the 61.8% retracement level at 1.0131. If the market shows ability to hold above 1.0, it builds the case for higher targets.
Throwback: For now, the ability to bounce off a previous resistance pivot at 0.9886 was a good sign for the test of parity. If the market then comes back and falls below 0.9885, the break above the trendline and/or above parity is not clear. In fact if there is a slide below the rising trendline as well, we should refocus on the bearish outlook at least to 0.9733 pivot and possibly the 0.9631 low.
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
Copyright FX Times All rights reserved.