Tuesday September 23, 2008 - 18:12:18 GMT
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Chart of the Day - 9/23/2008 - USD/CAD
(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend line in red; 200-period simple moving average in light blue.)
9/23/2008 â€“ USD/CAD â€“ Price action on USD/CAD (a 4-Hour chart of which is shown) has been approaching a confluence of support offered by two trendlines. This support occurs within the context of a rough, upward-consolidating wedge pattern (represented on the chart by the two converging green lines). The first support factor is provided by the bottom trendline of the wedge. The second support factor is the red downtrend resistance line which should now act as support after it was broken to the upside early last month. This coming together of two support factors currently resides approximately around the 1.0250 region. Oscillators like the displayed Stochastics, which are well in oversold territory and pointing up, are supporting a potential bounce back up at or near support, towards the upper part of the wedge. This bounce may have already begun to occur as of Tuesday. In the event of an eventual breakdown below the current confluence of support, on the other hand, price should target key psychological support around the 1.0000 region.
Chief Technical Analyst
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