FX Path

USD/CAD - Near Critical Support within Downtrend

Posted: 16 Sep 2009 08:45 AM PDT

By dropping down to 1.0650 and approaching strong support in the process, price action on USD/CAD, a daily chart of which is shown, is close to confirming an overall downtrend continuation. This downtrend has been in place since the March high just above 1.3000. Currently, if price breaks down below the 1.0630 support region, which represents a 10-month low and the lowest low in the current downtrend, the downtrend continuation will have been confirmed. For more technical analysis on this currency pair, please click here for Wednesday’s (9/16/2009) Chart of the Day.

- James Chen, CTA, CMT

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