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USD/CAD - Adhering to Uptrend Support

Posted on February 25, 2009 at 14:57 in Analysis by James Chen

Consolidating price action on USD/CAD, a daily chart of which is shown, has been adhering closely to a key uptrend support line extending from the swing low in late September. Moderately bearish within the last week or so, this pair has stalled at uptrend support, but may go on eventually to make a bonafide breakdown of this line. In this event, strong support to the downside resides in the 1.2100 price region, a major prior support/resistance level. To the upside, a true breakout of the downtrend resistance line (currently in the 1.2600 area) should meet further resistance in the 1.2750 region, another important prior support/resistance level.

4 Responses to “USD/CAD - Adhering to Uptrend Support”

on 25 Feb 2009 at 3:08 pm1Yohay

In the meantime, risk aversion pulls the pair upwards, right after the bad Existing Home Sales were released.
Uptrend supports holds.
on 25 Feb 2009 at 3:17 pm2James Chen

Hi Yohay,

Absolutely, at least for now, support is holding well. But I am looking for a potential breakdown of this line in the near future. We shall see. Thanks, as always, for your comments, Yohay!

James Chen
on 26 Feb 2009 at 2:59 am3Jeff Roush

Waiting for that support to break to the downside. Should be a good 200-500 pip move over the next few weeks.
on 26 Feb 2009 at 2:38 pm4James Chen

Hi Jeff,

Thanks for your comment! Yes, seems like a breakdown might be close.

James Chen

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4 Responses to “USD/CAD - Adhering to Uptrend Support”