Forex Technical Update
The daily USD/CAD chart shows the pair trading up in the 4/10 session, and has respected range resistance at 1.0050 in the 4/11 session so far. The market has been trending down from the 1.0650 area since Nov. 2011 before it started ranging at the beginning of Feb 2012. The daily RSI reading is at 60, and if it pushes above 60, it reflects a loss of bearish momentum, and if price also pushes above 1.0050, we could say a possibly bottom has formed.
The Loonie (CAD) is positively correlated to oil prices (so USD/CAD is negatively correlated to WTI Crude Oil), so let's take a look.
WTI Crude Oil:
WTI Oil price has been sliding, and is approaching the 100 psychological handle, which is also near a rising trendline and 61.8% retracement(100.98) of the 95.45 to 109.93 swing. Note that the RSI is at 40, and if the bullish momentum is to maintain, it should stay above.
Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes and IBTrade will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.