Forex Technical Update
USD/CAD Daily Chart 9/12/2012 9:20AM EDT
The previous USD/CAD update noted the attempt to break below 0.9725 pivot. Well not so fast. The market has since consolidated around this level, and completed a very short-term double bottom by start of the 9/12 US trading session, as USD/CAD broke above the 0.9735. A breakout projection targets 0.9760, but we also see a previous pivot at 0.9755.
Momentum should also be noted. Maintenance of bearish momentum in the 1H chart is likely to keep the RSI under 60, which means, the rally from this double bottom could still be within the bearish outlook if the RSI does not sustain a break above 60.
If a throwback holds above 0.9725, there might be a bottom building for further short-term bullish outlook. In this scenario, we might still want to limit the bullish outlook to 0.98, the previous 2012 support pivot, which we should monitor as a possible resistance factor now that it has broken as support.
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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