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USD/CAD Monitoring for Exit Signals
- 4H and 1H: The USD/CAD started this week unable to break below short-term support at the 1.0420 area. (Refer to last pair in the Weekly Technical Update 11.13.2009 ). Instead of the decline, the market retested our short-term resistance instead.
- Basically, a significant break above this 1.0600 area should give us a signal to exit the bearish outlook.
- However, the market rejected today’s rally and the 1.0600 area held. Now we have a short-/medium-term range between 1.0420 and 1.0600.
- Today’s candlestick combinations and stochastic readings in both the 4H and 1H timeframes suggest we are due to test the 1.0400 area again in the upcoming Asian and European sessions.
Fan Yang
Currency Analyst,
Commodity Trading Advisor
