US Dollar vs Canadian Dollar Breaks Down Below Key Support Confluence
James Chen December 7, 2012 8:45 PM
<p>USD/CAD (daily chart) as of December 7, 2012 has tentatively broken down below the confluence of support provided by the key 0.9900 price level and […]</p>
USD/CAD (daily chart) as of December 7, 2012 has tentatively broken down below the confluence of support provided by the key 0.9900 price level and the 50-day moving average. This bearish price action occurs after price had been stalling and consolidating in a tight range just above this support confluence for the past two weeks. This also occurs after price broke down two weeks ago below an uptrend support line extending back to the September 0.9630 low, after showing a clear bearish divergence between price and Stochastics in the first half of November. Now that the 0.9900 support confluence has tentatively been broken down, the directional bias has shifted further to the downside, with nearby potential support residing around the 0.9800 price region. In the event of a further breakdown below that level, price could move towards a potential re-test of the September 0.9630 low.