James Chen
09-18-2008, 11:23 AM
9/18/2008 – USD/CAD – USD/CAD (a daily chart of which is shown) has once again reached a critical juncture. Price has reached up to and stalled at a significant resistance point right at a key long-term downtrend line (represented on the chart by the red line). This downtrend resistance line has been touched at least five times over the last five-and-a-half years. In the event of a pronounced bounce down off this resistance, major support resides around the 1.0400 region. Any strong breakout above this trendline with significant momentum, on the other hand, should target further resistance around the price region surrounding the 1.0900 level.
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; 200-period simple moving average in light blue.)
James Chen
Chief Technical Analyst
FX Solutions
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by FX Solutions, LLC., and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend line in red; 200-period simple moving average in light blue.)