USD/CAD at a Rising Trendline Support

by Admin

Awards 2013

USD/CAD 4H Chart 4/22/2013 8:50AM EDT


Choppy uptrend: The USD/CAD has been bullish since April 11, as seen in the 1H chart. It broke above a falling channel resistance on 4/15 and continued to put in higher lows since. It has however stopped making higher highs since the market failed to breach the 1.03 handle, and instead retreated from a high of 1.0293. In a way you can say it has been in an ascending triangle structure.

1.03: At this point, a break above 1.03 could be a strong bullish signal, though the first challenge will be in the 1.0335-1.0340 area, which is the March and 2013 highs.

Trendline: The 4/22 session so far traded USD/CAD downto a rising trendline that has held price action since 4/15. A breakdown of the TL support can neutralize the slight bullish bias and open up some support pivots.

Support pivots: This week’s low of 1.0246 is the first challenge to the downside. Then there is a pivot just under 1.0230. The 1.02 handle up to 1.0203 represents last week’s low. A break below 1.0180 might be a sign that the market is bearish in the 1H chart.