USDCAD Classic Technical Report 08.27.2012

USDCAD pushed higher as expected after putting in a bullish Piercing Line candlestick pattern above support at 0.9854, the March 1 bottom, taking out resistance at the underside of a falling channel set from early June. Prices are now retesting the channel bottom (0.9897) as support with a break back below that exposing 0.9854 anew. The next layer of resistance lines up at 0.9983 at the 23.6% Fibonacci retracement, a barrier reinforced by the psychologically significant parity figure.

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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