By Mohammed Isah of FXTechstrategy.com.
USD-CAD: The pair is on the offensive following its two-day recovery started at the 0.9961 level, its April 15, 2010 low. With USD-CAD failing to hold below its parity level, leading to the present recovery, we are likely to see further strength toward the 1.0301 level, its March 26, 2010 high.
A breather could occur there and turn the pair back down, but if that fails to occur, the pair should head further higher toward its Feb. 22, 2010 low at 1.0368 and possibly higher. The daily momentum indicators are bullish, supporting this view.
On the downside, support initially comes in at the 1.0103 level, its April 8, 2010 high, with a break below there exposing the 1.0000 level, where we may see price hesitation again. Further out, the 0.9951 level, its 2010 low, will be the next support followed by its July 8 low at 0.9818 and then the 0.9707 level, its Feb. 8 low.
In a summary, although USD-CAD remains biased to the downside medium term, its inability to hold below the 1.0000/0.9951 levels has triggered a corrective recovery.
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.