Forex Technical Update
USD/CAD 1H Chart 7/19/2012 7:50AM EDT
The USD/CAD continue a bearish market since the May high near 1.0040. It has been trading in a declining channel but has accelerated with a sharper angle downwards in July. However, as we trade at 1.0070 ahead of the 7/19 US session, the market is coming close to a key pivot at 1.0050.
The 1.0050 was a resistance pivot from January to April of 2012, before it broke in May. It should now be noted as a possible support level. The 61.8% retracement of the 0.9798 to 1.0441 bull run in May is at 1.0044, right near this pivot.
The daily RSI is cracking the 40 level. This can be interpreted as almost losing the momentum from the rally May. BUT, if the 1.0050 holds, and the RSI can remain above 40, the bullish outlook still remains. This outlook gains traction if the USD/CAD breaks above the newly adjusted declining trendline.
As far as wave count goes, it CAN be a completed double 3″ correction.
USD/CAD Daily Chart 7/19/2012 7:55AM EDT
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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