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USD/CAD - Four-Year High Triple-Tested

Posted on December 5, 2008 at 14:42 in Analysis by James Chen

USD/CAD Daily Chart(Please click on the accompanying chart to enlarge.)

As of Friday morning in New York, price action on the USD/CAD daily chart (as shown) has shot up to re-test the 4-year high in the pair (1.2980-1.3000) once again. This now constitutes a triple-tested high. Subsequent direction should be dictated by how the day and week closes. If this major resistance is respected, price could revert back, targeting the steep uptrend support line as shown on the chart. A significant break and close above the 1.2980-1.3000 zone, on the other hand, could carry strong enough momentum to target the 1.3250 resistance region.

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