Forex Technical Update

Previous: USD/CAD Threatening Range Support After BoC Keeps Hawkish Tone (6/5)

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.

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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.

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.