Chart of the Day
USD/CAD Hourly Chart — June 21, 2010
By
James Chen
, Published:
06/21/2010
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
6/21/2010 – USD/CAD – Price action on USD/CAD, an hourly chart of which is shown, has broken down well below the short-term triple bottom support established last week. That triple bottom support resided in the 1.0220 price region. As mentioned last week, despite the fact that triple bottoms are often considered reversal patterns, the bearish trend that has prevailed recently could have potentially indicated a triple bottom breakdown, which indeed occurred. After this support breakdown, price then went on to break down swiftly below the key 1.0200 support/resistance level. Currently, immediate downside support resides in the 1.0100 price region. In the event of a breakdown below this level, the key bearish target would clearly be a re-visit of parity (1.0000).
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James Chen, CMT
Chief Technical Strategist,
FX Solutions
Chief Technical Strategist,
FX Solutions
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