Forex Technical Update

Previous: USD/CAD Cracks the 1.03 Resistance Pivot (6/25)

USD/CAD Chart 1H 6/27/2012 10:10AM EDT

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After breaking above 1.03, the USD/CAD failed to sustain the short-term uptrend that started after bottoming last Wednesday (6/20). Instead, it slid throughout the 6/25 and 6/26 sessions. During the 6/27 session European-US session, the pair is testing and so far respecting a rising trendline connecting the lows back to the 6/20 bottom. Just above, we also have a declining trendline that's been holding the slide from the 6/25 high of 1.0314.

A break below 1.0239 should open up firs the 1.02 psychological support in the near-term, but also the June low near 1.0160.

To the upside, we would need a clear break above 1.03 to open up the 1.0350, then 1.0440 June high.

USD/CAD Chart 4H 6/27/2012 10:13AM EDT

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Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of rex News, Analysis, Education, Videos, Charts, and other trading resources.

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