Forex Technical Update
USD/CAD Chart 1H 6/25/2012 9:57AM EDT
The 1H USD/CAD chart shows a very clear bullish continuation. 1) After crossing over the 200-hour, it respected it as support. This is known as a slingshot. 2) Also, the RSI reading pushed above 70, came back to test 40, and returned back above 60, showing persistence in the bullish momentum. 3) The 1.03 resistance pivot is broken. A break below 1.0260 however can weaken the case of a bullish outlook.
The 4H chart shows that the break above 1.03 also breaks above a declining trendline holding June's bear run. The break therefore opens up the June high at 1.0440. Before that, look for 1.0350-60 area as the next resistance pivot.
USD/CAD Chart 4H 6/25/2012 10:00AM EDT
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of rex News, Analysis, Education, Videos, Charts, and other trading resources.
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