Price action on USD/CAD has retreated substantially from the recent false break of 1.3 resistance. Now that price has come down, that false break may be considered the fourth leg of a quadruple test. Currently, as of Friday (3/13/2009) morning, price has descended to the point where it is approaching an uptrend support line extending from the September 2008 lows. This trendline represents a critical juncture for this pair. A bounce at or near the line could indicate a subsequent retest of the 1.3 upside target. A breakdown of the line could target further support in the 1.2400 price region.
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