USD/CAD Back at Channel Resistance

\ 8:23 AM EST \ November 28th, 2012
Forex Technical Update

Previous: USD/CAD Cracking a Rising Trendline from September (11/27)

USD/CAD 4H Chart 8:17AM EDT 11/28/2012

USD/CAD 11/28/2012 4H chart

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.

Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.

Please login to comment. Dont have an account? Register