USD/CAD 4H Chart 8:17AM EDT 11/28/2012
Channel: The previous update on USD/CAD observed an attempt to break below a rising trendline going back to September. I noted a break below 0.99 should clear it, but the bearish outlook required further break below the 0.9872 Nov-low. Instead, the latter 11/27 and early 11/28 sessions respected the 0.99 handle, and rallied back to 0.9950 by the early 11/28 US session. This is back to the channel resistance and previous support/resistance pivot.
Upside break: A break above this channel and pivot resistance probably requires clearing above 0.9960. This would first expose the parity (1.00 level). Then the highs just under 1.0050. The bullish outlook should see the 4H RSI push above 60 and tag 70 as well, or else momentum is not there.
Breakdown: Failure to push back above 1.00 could be a sign of weakness, a push below 0.9870 however will be needed to bring some medium term bearish outlook that opens up the 0.9631 September low.
Fan Yang CMT is the Chief Technical Strategist, trader, educator and a of the main contributors to FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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