USD/CAD 4H Chart 10/3/2012 7:35AM EDT
Breakout: The USD/CAD indeed found resistance in the 0.9840-0.9850 area as anticipated in the previous update. Indeed, the market stalled around the 0.9850 level, forming a week-long triangle seen in the 1H chart. During the 10/3 European session, the market pushed above the triangle resistance, giving the upcoming US session a bullish breakout to deal with.
Throwback: IF there is a retracement, holding above 0.9840 should be a good sign that the market intends to extend higher. A break below 0.98 should introduce the opposite, bearish outlook.
There are a couple of declining trendlines seen in the daily chart. If price extends the current breakout, it might meet it around 0.99. The next resistance pivot for the USD/CAD will be near the 0.9950 handle. Also note that when the daily RSI reading approaches 60, we should anticipate some resistance, even if its just in the very short-term.
USD/CAD 4H Chart 10/3/2012 7:42AM EDT
Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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