Forex Technical Update
USD/CAD 1H Chart 8/13/2012 8:50AM EDT
After some brief weakness last Friday (8/10) after worse-than-expected employment data for Canada, the Canadian dollar quickly regained strength, pushing USD/CAD to the week's low and edging out a slightly lower low. It then started trading in a very narrow near-term range, which still holds price action during the start of the 8/13 US session. This tight range is roughly between 0.9920 resistance ad 0.9905 support.
The USD/CAD rallied to the resistance area of 0.9920 as I type this update. A break above opens up the 0.9942 and the 0.9960 pivots in today's session before exposing to the 1.00, parity level.
It should be noted that the market has been bearish in the medium term so look for at least brief resistance at the parity level, if the market gets there.
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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