Chart Of The Day: USD/CAD

10/10/2008 - USD/CAD - As of Friday mid-session in New York, recent dramatic bullish moves on the USD/CAD (a daily chart of which is shown), have shot price up past several key resistance zones, reaching all the way up to the major 1.1970-2.000 resistance region before finally backing off. This level represents close to a 3-year high in the pair. As of Friday noon in New York, price continues to look and act in somewhat of a bullish manner, although the pair is technically well-overbought. Any subsequent rally that breaks out above the important 1.2000 level, which could be a distinct possibility, may eventually target a significant support/resistance level to the upside around the 1.2230 region. Any bearish retracement in the remarkable bull run of the last couple of weeks, on the other hand, should find substantial support around the 1.1570 area.

James Chen
Chief Technical Analyst

FX Solutions

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(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance lines in yellow; 200-period simple moving average in light blue.)