US Dollar vs. Canadian Dollar Consolidates Above Key Support Confluence

<p>USD/CAD (daily chart) as of December 4, 2012 has consolidated just above key support around the 0.9900 price level, which is also right around the […]</p>

USD/CAD (daily chart) as of December 4, 2012 has consolidated just above key support around the 0.9900 price level, which is also right around the level of the 50-day moving average. This confluence has provided support for the pair for the entire past week’s tight consolidation. The consolidation occurs after price showed a clear bearish price-oscillator divergence throughout the first half of November, before breaking down below an important uptrend support line extending back to the September 0.9630 low. Currently still in consolidation right above the 0.9900 support confluence, any breakdown below this area could have the downside follow-through to re-test near-term potential support around the 0.9800 price region, with longer-term potential support around the 0.9630 price region. To the upside, if the current support confluence is respected, potential resistance resides just above parity around the key 1.0050 price region.

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