Forex Technical Update

Previous: USD/CAD – Monitoring 0.9840 for Resistance (9/24)

USD/CAD 4H Chart 9/26/2012 9:05AM EDT

USD/CAD 9/26/2012 4H chart

Following up with the previous USD/CAD update, the pair did indeed extend above 0.98 to 0.9840. It is currently holding at this level as we begin the 9/26 US session. This is the support pivot of a previous consolidation period in August, and the 200-4H-SMA.

If the market can’t break above 0.9840-0.9850 area, a falls back below 0.98, it would have failed to reach the projected channel resistance in the 4H chart. Such a dynamic is bearish, and suggests a break below the channel support, which would refocus USD/CAD to the downside.

Extension above 0.9850 gives more strength to the bullish case, where the next resistance pivot is at 0.9950, high from the previous consolidation period.

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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