USD/CAD 4H Chart 8:58AM 10/19/2012
Failed Bearish Break: The USD/CAD had some whiplash action this week. After pushing to 0.9880 to start the week on the bank of dovish statements from BoC gov, Mark Carney, the USD/CAD fell sharply. The downswing pushed to a new low for the week and threatened to break below a projected rising trendline support going back to the 0.9631 September low. However, a failure to continue was followed by an upswing into new highs for the week and October.
Momentum: Note that the RSI failed to push below 40 and reflected maintenance of the bullish momentum, albeit a very weak one since the RSI did no tag 70. No with price breaking above the previous high and attacking the 0.99 handle, a break above with the RSI tagging 70 reflects bullish continuation momentum in the short-term
Swing projection: The daily chart shows a swing projection to0 0.9975. Note also possible resistnace from the a previous brief-consolidation resistance around 0.9940, which is also the 38.2% retracement of the 1.0441-0.9631 down trend. The 0.9975-1.00 parity level represents a key resistance area, as it also coincides with a falling trendline going back to the June 1 high of 1.0441.
USD/CAD Daily Chart 9:00AM 10/19/2012
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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