Forex Technical Update
Previous: USD/CAD Maintains Bearish Stance Just Above 0.98...(8/21)
USD/CAD 1H Chart 8/22/2012 8:50AM EDT
The 1H USD/CAD chart shows a pair in a very sharp rally after finding support near 0.9845. We noted that the 0.98 level was a key 2012-support pivot, and the market did not allow the pair to reach this low before putting in a bottom, which was done when price broke above the 0.99-0.9905 resistance, 200-hour SMA. The 1H RSI also broke above 60, and also above 70, showing loss of bearish momentum and now building of bullish momentum. After Canadian retail sales data disappointed 8:30AM EDT, the USD/CAD cracked the 0.9940 pivot, now with near-term upside risk to the 0.9970 pivot and then 1.00
The loss of bearish momentum is also seen in the 4H chart, as the RSI pushes above 60, reaching for 70. We also see the 0.9940 resistance pivot. If the USD/CAD is near-term overbought and retraces, the 0.99 handle will be key. Holding above this level shows respect to the bottom the market put in, which confirms a reversal in development.
USD/CAD 4H Chart 8/22/2012 8:55AM 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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