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USD/CAD - Hits Long-Term Uptrend Support Line

Posted on May 29, 2009 at 14:16 in Analysis by James Chen

Substantially dollar-weakening price action on USD/CAD, a daily chart of which is shown, has hit and slightly broken below a long-term uptrend support line extending from a major low back in November 2007. Further follow-through on the break should target key support in the 1.0800 price region.

6 Responses to “USD/CAD - Hits Long-Term Uptrend Support Line”

on 30 May 2009 at 2:49 pm1Jason Macko

I’m thinking the 1.06 area might provide some temporary support if Oil keeps going up, and parity gets closer. Based on a fib from July 07, 2007 to the highs in Feb 09, 2009, that level represents the 0.618 fib support, and if that one goes, I’m thinking parity or lower even is possible. All of this would be based on the fundamentals being in place of course.
on 30 May 2009 at 10:16 pm2James Chen

Thanks for visiting and for your analysis, Jason!

James Chen
on 31 May 2009 at 2:35 am3zulk

hi..
agree that it seems this is potentially will creates new movement and change..
on 31 May 2009 at 4:41 pm4James Chen

Thanks, Zulk!

- James Chen
on 31 May 2009 at 5:29 pm5Frank

To comment on Jasons 1.06 level. Other than a fib, there doesn’t seem to be any kind of support or resistance there. 1.03 seemed to have been tested a lot at the end of ‘07 and through most of ‘08. Should fundamentals be CAD positive this week, I’m liking 1.03, and parity which happens to be at fib 0.764. I’m a fairly new trader and may not see things properly so please correct me if I’m wrong

Frank
on 01 Jun 2009 at 7:28 pm6James Chen

Hi Frank,

Thanks for visiting and for your comments! Yes, I see the strong support at 1.03. It’s a major level that should eventually be targeted if the pair continues its bearishness. As we are seeing now, though, there should be some retracement and consolidation before that occurs. Thanks, Frank.

- James Chen

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6 Responses to “USD/CAD - Hits Long-Term Uptrend Support Line”

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