USD/CAD Uptrending
IronFX Strategy Team | Jul 15, 2013 08:06AM ET
The USD/CAD has been uptrending for the past 10 months, maintaining a strong rising trendline support. During the last four days of the previous week however we saw a substaintial decline in this pair following the decline in USD and rise in commodity currencies.
Nevertheless, that drop is considered to have been a temporary correction that was probably over and a rise in the pair is expected to continue. The pair has been rising during Friday and today after bouncing higher from a strong support level where the 10 month rising trendline support and the 1 month up move 61.8% retracement level coincide. Further to the above the stochastic oscillator just got out of the oversold region, which is further evidence of the down move should be over.
There is some resistance tested at the point of writing at 1.0430, with a move towards 1.0600 highgly plausible. Support levels can be found at several levels at 1.3065 ,1.0270, 1.0140 and 1.003.
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