USD/CAD Chart 15-min 6/13/2012 10:40AM EDT
Looking at the 15-min USD/CAD chart, we see that the pair has entered a range roughly between 1.0250 and 1.0280. The RSI is also stuck between 40 and 60, reflecting the consolidation momentum in this time-frame.
Price action is heavy is is about to threaten the support level in the 1.0245-1.0250 area. (Actually as I get ready to post this article, the market just pushed below the support. If it can stay below the 1.0260-1.0265 “central pivot” area of the range, the short-term bearish outlook can be confirmed.)
USD/CAD Chart 4H 6/13/2012 10:38AM EDT
A break below 1.0245 should open up the 1.02 level, a recent support pivot. This outlook goes with a bearish trend that has been held under a declining trendline seenn the 4H chart. The next key level below 1.02 is the support pivot near 1.0150.
A return and clearing above 1.0280 suggests a change of trend, with first challenge near 1.0330, with a more aggressive target to the upside being the 1.0440 handle near the 2012 highs.
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Fan Yang CMT is a trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of rex 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.