By Yan Petters – Since the beginning of the year the USD/CAD pair saw a very strong bullish trend. However, after peaking at the 1.0770 level, a bearish correction was initiated. Currently, the pair seems to have potential to reach the 1.0200 level.
• The chart below is the USD/CAD 1-day chart by ForexYard.
• The technical indicators used are the Bollinger Bands, the Slow Stochastic, the MACD/OsMA and the Relative Strength Index (RSI). The Fibonacci Retracement lines were used as well.
• The Fibonacci Retracement lines show that the pair has reached the 23.6% lately, and looks to breach through it.
• This suggests that the pair is on its way towards the 1.0200 level, the bottom Fibonacci Retracement line.
• Bearish crosses of both the Slow Stochastic and the MACD also indicate that the bearish move has more room to go.
• If the pair USD/CAD pair will manage to breach through the 1.0200 level, it will indicate that a long-lasting bearish trend is in place.
USD/CAD Daily Chart
Forex Market Analysis provided by Forex Yard.
© 2006 by FxYard Ltd
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