Forex Technical Update
USD/CAD Chart 1H 6/6/2012 11:20 AM EDT
The USD/CAD ranged a bit further after the BoC left its key interest rate at 1.0%. Eventually, it failed to push above consolidation resistance and fell through support at 1.0350, as seen in the 1H chart.
After that the RSI tagged 30, reflecting some initial bearish momentum in the 1H time-frame. A pullback that fell from around 1.0370 suggests the bears are in charge at the moment as the market continues to test the support around 1.03. This is where the 200-hour simple moving average resides at the moment, and 1.0296 is 61.8% retracement of the latest rally swing from 1.0205 to 1.0444.
A break below 1.03 opens up that 1.0205 low.
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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