The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- We continue to retain our bullish bias on USD-CAD despite its present price hesitation. As long as the pair continues to retain most of its recovery strength started from the 0.9445 level in early May 2011. While the 0.9709/20 zone hold as supports, our upside view remains valid.
A cut through the 0.9800 level and the 0.9845 level will set the stage for additional strength towards the 0.9967 level, representing its long-term falling channel top (visible on the weekly chart). Its daily stochasticsis bullish and pointing higher supporting this view. Alternatively, in case of a pullback, the 0.9709/20 zone will be aimed at ahead of its May 20, 2011 low at 0.9639 where a break will open the door for further declines towards the 0.9511 level, its May 11, 2011 low.
We expect that level to hold and turn the pair back up, but if it snaps, the 0.9446 level, its 2011 low will be targeted. All in all, USD-CAD remains biased to the upside on corrective recovery of its recent long-term weakness though it is hesitating.
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.