USDCAD—slipping

My short position in USDCAD is from 1.0310 and is stopped at breakeven. The outlook for this pair is negative as it is now pushing at the little two-day base it hammered out at 1.0271. Support is at 1.0242, 1.0225, and 1.0208. Those are obvious fighting points for the bulls but it's possible the pair may drop to the lower boundary of its downward channel at 1.0078. I doubt very much we'll see a move back to parity. Resistance is 1.0340/62 and 1.0444. Until it successfully scales those prices, there's really little point in talking about higher levels.

Here's the daily chart:






















© Dianne Fecteau, 2010. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.

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