Price action on USD/CAD, a daily chart of which is shown, has broken down decisively below its previous consolidation, continuing the downtrend in the pair that has been in place since the long-term high was reached in early March. This occurs in an environment where the U.S. dollar has been weakening and gold has just hit an all-time high. This also occurs after USD/CAD made a false breakout above a key downtrend resistance line extending from the pair’s long-term high above 1.3000. For more technical analysis on this currency pair, please click here for Friday’s (10/09/2009) Chart of the Day.
- James Chen, CTA, CMT
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