: The pair continues to hesitate above its parity level at 1.0000.
As highlighted in our past analysis, while USDCAD continues to trade above the mentioned level risk of a base-forming price, activities exist for an eventual corrective recovery higher with the 1.0219 level, its Jan. 14, 2010 low and the 1.0301 level, its March 26, 2010 high coming in as upside targets.
Beyond there will open the door for more strength towards the 1.0320 level, its March 11, 2010 high and next its Feb. 22, 2010 low at 1.0368. That level should cap recovery if tested and turn the pair back down in line with its broader medium term weakness.
Alternatively, a break and hold below the 1.0000 level, its psycho/parity level, will set the stage for a decline towards its 2010 low at 0.9975 with a cut through there putting further downside pressure on the 0.9818 level, its July 2008 low and then the 0.9707 level, its February 2008 low or even lower.
Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces
for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.