USD-CAD: Although USD-CAD retains its broader medium-term downside weakness, triggered from the 1.3060 level, its 2009 high, it continues to face corrective recovery. Its second attempt on the upside is coming on the heels of a halt in price declines at the 1.0108 level, its May 13, 2010 low.
Its first upside recovery lost momentum at the 1.0737 level and subsequently collapsed the previous week. On a sustained break of the 1.0737 level, further strength should build up toward the Feb. 5, 2010 low at 1.0779, with a break of there opening the door for more strength toward the 1.0867 level, its Nov. 1, 2009 high.
Its daily RSI is bullish and pointing higher, suggesting further strength. On the downside, support comes in at the 1.0301 level and the 1.0213 levels, where a reversal of roles is expected to occur and turn the pair higher again. However, if that zone breaks, we may witness more declines toward the 1.0000 level, its parity/psycho level, and then its 2010 low at 0.9927. Overall, having halted its downside weakness at the 1.0108 level and continued to maintain a bullish tone, risk of further upside is expected.
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.