Thursday, June 25, 2009

USD/CAD Support & Resistance --- Focus on 1.18 target


US Dollar strength is a fact at present. USD/CAD which tightly correlated with Crude Oil price is tracking the CL correction from the $73.88 top. Let's see the important points on the USD/CAD daily chart.

First obvious thought is that 1.18 recent Top has a huge attraction power and the trending momentum is intact so far.

However its obviousness makes it tricky just like the H&S pattern in EURUSD much commented last week - it is a fact that today instant knowledge makes obvious patterns to never materialize.

Howeve the Trendline Resistance from March Highs comes at 1.1660 - so it is an important point that if breached with close above must confirm the immediate 1.18 target.

Support levels IMHO (derived from important chart points) are:
1.1474
1.1447
1.1420

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