Forex Technical Update
USD/CAD Daily Chart 9/11/2012 7:55AM EDT
Commodity currencies are firming during the 9/11 trading session. The USD/CAD has been in a bearish mode since finding a high of 1.0444 to start June. As summer is wrapping up, the pair has dug up new 2012 lows, and is testing the 0.9725 support pivot from 2011.
When taking a look at the weekly chart, we see that the bear run has a downside risk toward the 2011 lows just above 0.94. The RSI has broken below 40, signaling a loss of the bullish momentum seen last year in July through September and early October.
If there is a strong pullback, failure to break previous support pivots (up to 0.9890) should confirm bearish stance. Meaning a break above 0.99 makes the bearish outlook unclear, and a break above parity should introduce a bullish reversal scenario.
In the meantime, the market's trend is gravitating USD/CAD toward the 0.94-0.9450 area. This bearish outlook has an even higher chance if oil rallies, for example, if Brent Crude breaks it's recent range to the upside.
USD/CAD Weekly Chart 9/11/2012 8:00AM 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.
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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