Forex Technical Update

Previous: USD/CAD Cracking Triangle Support...(1/3)

USD/CAD

USD/CAD

 The USD/CAD ailed to break below triangle support after cracking it to start the new year. The 4H chart shows a market that has bearish overall momentum. But price action is breaking above a projected trendline, and the RSI is also about to test 60, above which we can say there is a lost of bearish momentum.

The 1H chart shows the market now trading at 61.8% retracement of the latest downswing from 1.0267 to 1.0075. This is right under 1.02. Inability to break above, and a return below 1.0140 could follow with another attempt at triangle support. A break above opens up possibility of going to the 1.0267 high, and possibly the 1.03 level. Note that the first target is near the 200 4H SMA, and the next is near a higher pivot as well as an inner triangle resistance. The next target above that is near 1.04, at the December 2011 high, and an outer triangle resistance.

USD/CAD

Fan Yang CMT is the Chief Technical Strategist FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.