Forex Technical Update
USD/CAD 4H Chart 8/16/2012 8:30AM EDT
The USD/CAD edged below the 0.9905 support pivot and the 0.99 psychological handle. It has since been sitting at 0.9890 without direction, but the break does continue the bearish trend toward the 2012-low at 0.98. The 4H RSI reading continues to show persistent bearish momentum. The 4H simple moving averages remains aligned in the bearish mode as well.
The daily chart shows the market sliding toward the 2012-low near 0.98. The RSI is tagging 30, a sign that we will soon be oversold at least for the near-term. The moving averages in this chart are not in bearish alignment and the 200-SMA is more or less flat. This suggests we are not in a bearish trend in a higher degree, and thus we should consider the 0.98 support pivot to be key - a place for demand.
A regression scenario suggests a return toward the 200-day SMA, but a conservative target would be the 1.00, party level.
USD/CAD Daily Chart 8/16/2012 8:35AM EDT
Fan Yang CMT is a forex 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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