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 (
) -- The U.S. dollar has resumed its short-term bullishness against the Canadian dollar, cutting through its key resistance at the 1.0384 level in early trading today and opening the door for a run to the upside.
This development now leaves the Sept. 5 high of 1.0508 as the next upside target, with a breach exposing the August 2010 high of 1.0671. The bigger barrier lies at the 1.0852 level, its May high. Its daily RSI is bullish and pointing higher suggesting further strength.
On the downside, support comes in at 1.0384 where a reversal of roles is likely to occur and turn the pair back up. Other supports are located at the Sept. 29 low of 1.0255 and the Sept. 27 low of 1.0144. A break below that will expose its .382 Fib Ret (0.8724 - 1.0384 levels).
All in all, having resumed its short-term uptrend, the risk is for further upside gains to occur in the days ahead.
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.