(Please click on the accompanying chart to enlarge.)
As of early Friday morning (New York session), price on the USD/CAD daily chart, as shown, is still stuck in a tight consolidation zone after a deep drop stalled several days ago. Price is now ripe for a directional move. A continuation break of the consolidation to the downside should meet immediate support at or near the uptrend support line (currently around 1.0250), a strong breakdown of which could ultimately target the key psychological 1.0000 region. Any significant break above the current consolidation, on the other hand, should eventually target key resistance around 1.0550.
- James
James Chen is the Chief Technical Analyst at FX Solutions, a leading Forex broker. He is also a registered Commodity Trading Advisor (CTA) and a Chartered Market Technician (CMT) Level 3 candidate. At FX Solutions, Mr. Chen writes daily currency analysis, conducts forex trading seminars, and has authored numerous articles on currency trading and technical analysis for major financial publications. His upcoming book, Essentials of Foreign Exchange Trading (John Wiley & Sons), will be released in early 2009.
Technical Trading Tips and Techniques by 
