Forex Technical Analysis (2010/06/21) USD/CAD Extends Drop Below Support Towards Parity
(Please click on the forex chart thumbnail to enlarge)
6/21/2010 Forex Technical Analysis (FXpath.com) – USD/CAD, an hourly chart of which is shown, has broken down well below the short-term triple bottom support established last week (as outlined in last week’s USD/CAD analysis). That triple bottom support resided in the 1.0220 price region. As mentioned last week, despite the fact that triple bottoms are often considered reversal patterns, the bearish trend that has prevailed recently could have potentially indicated a triple bottom breakdown, which indeed occurred. After this support breakdown, price then went on to break down swiftly below the key 1.0200 support/resistance level. Currently, immediate downside support resides in the 1.0100 price region. In the event of a breakdown below this level, the key bearish target would clearly be a re-visit of parity (1.0000).
UPDATE: AS OF MONDAY (6/21/2010) EARLY AFTERNOON IN NEW YORK, PRICE ACTION ON USD/CAD HAS RETRACED ALL THE WAY BACK UP TO AND SLIGHTLY ABOVE PRIOR SUPPORT IN THE 1.0220 PRICE REGION, FAILING TO HIT ITS INITIAL DOWNSIDE TARGET OF 1.0100 AS OF YET.
(Price on 1st pane, Slow Stochastics on 2nd pane; horizontal support/resistance levels in yellow; uptrend lines in green; downtrend lines in red; chart patterns in white; 50-period simple moving average in light blue.)
James Chen, CTA, CMT (bio)
- Click here for my book, Essentials of Foreign Exchange Trading (Wiley).
- Click here for my book, Essentials of Technical Analysis for Financial Markets (Wiley).
- Click here for my video DVD set, High-Probability Trend Following in the Forex Market (FXstreet).
No related posts.
Please leave a comment below or subscribe to the feed and get articles like this delivered automatically to your feed reader.
Comments
No comments yet.
Leave a comment