Forex Signals

A bullish correction on USD/CAD as of Tuesday (3/23/2010) morning New York session has brought price back up to hit and briefly exceed resistance around the 1.0200 price region. Currently, price is consolidating right around this resistance. This bullish correction occurs after previously bearish price action within the context of an overall downtrend descended to 1.0060, just shy of its parity (1.0000) target. If the current bullish correction has ended, which would be evident by respect of the 1.0200 area, the major downside support target continues to reside around parity. To the upside, in the event of an extension of the correction that breaks out strongly above 1.0200, the key upside resistance target resides around the 1.0400 price region.

- James Chen, CTA, CMT

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