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.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.