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Dec 21, 2014

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Market Analysis

Home » Technical Analysis » Daily » CAD » USD/CAD Consolidating at Falling Trendline

USD/CAD Consolidating at Falling Trendline

Forex Technical Update

USD/CAD 1H Chart 3:20PM EDT 1/22/2013

USd/CAD 1/22/2013 1H chart

Short-term bull, consolidation: The USD/CAd has been in a bit of bullish mode since mid-January, staying above the 0.98 handle. Looking at the 1H chart, you see bullish momentum as the RSI remains above 40, and has been able to go above 70, especially in last week’s attack of the 0.9945 resistance. The moving averages are in bullish alignment, but a few shorter ones are converging, reflecting consolidation.  We now have a consolidation between 0.9945 and 0.9907. The RSI is stuck between 40 and 60 reflecting this consolidation momentum.

Falling trendline: It should be noted as we look at the daily char that this short-term consolidation in the 1H time-frame is occurring as the market is attempting to break above a falling trendline seen in the daily chart. Here direction is not clear, and 1.0 remains a key psychological level above the current price. Still, ability to break consolidation in the short-term is also a break above this falling trendline, which can open up some bullish outlook, with 1.0055 as a key resistance level to clear before further bullish outlook. (You can see this resistance from end of 2011-beginning of 2012 as well.)

USD/CAD Daily Chart 3:23PM EDT 1/22/2013

USD/CAD 1/22/2013 daily chart

 

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.

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