Forex Technical Update
USD/CAD Chart 1H 6/4/2012 2:26PM EDT
The USD/CAD has been bullish, and pushed toward 1.0445 after breaking above the ascending triangle noted in the previous update for this pair. Now it appears the market is in the middle of another consolidation pattern, this time with resistance at 1.0445 and support just above 1.0350, as you can see in the 1H chart.
Another sign that the market is consolidating is that the RSI is stuck between 40 and 60. However, the fact that the RSI did not break below 40 suggests that the bias is bullish since the market entered this consolidation after a rally, pushing the RSI above 70. A push above 1.0445 with the RSI popping above 60 would be a sign of bullish continuation. This would open up the resistance pivots of 1.0522 (Nov. 2011) and 1.0656 (Oct. 2011).
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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