Forex Technical Update

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USD/CAD Chart 1H 6/4/2012 2:26PM EDT

USD/CAD

 

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).

If the market does break below 1.0350, the 1.03 level will be key to monitor as a previous resistance level that can turn into support.

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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.

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.