USD/CAD Trading at 1.0250 Support

The weekly and daily USD/CAD chart show the support (Oct 09, Jan 09) - former resistance (2008) - at 1.0250. See Chaty below.

The pair is currently trading at this level. A breakthrough would open up a further decline to parity. However, the support has been tested twice during the last 6 months and was holding up.

Therefore I would favour a long trade with an attractive Risk-Reward-Ratio:

• Price: 1.0250
• SL: 1.0100
• TP: first target 1.0550 (possible up to 1.07)

USD/CAD, weekly



USD/CAD, daily

AUD/NZD Top: Can't break 1.30

The long term chart (weekly) indicates that there is a very strong resistance in the AUD/NZD at 1.30.

AUD/NZD, weekly:

During the last 2 years the AUD bounced back 4 times, reaching a max of 1.2960 in Jul 2008. Each time the price fall back significantly

Date                 Top                   Fall Back
Jul 2008            1.2960              1.0700, Oct 2008
Mar 2009           1.2940              1.2050, Apr 2009
May 2009          1.2940               1.2000, Oct 2009

Feb 2010          1.2925 (?)           ???

The current prices could offer a good short opportunity with a stop-loss placed a few pips above either the last swing high (1.2925) or above the Jul 08 high (1.2960). Based on the historic price action, this trade could offer an attractive risk-reward ratio.

AUD/USD: Lower Top at 50% Retracement Possible

Looking at the daily chart, it seems likely that a lower top is forming just above the psychological resistance at 0.9000. This level falls very close together with the 50% Fibonacci retracement level (0.8970) of the 0.9320 to 0.8620 decline.

Daily Chart





During the opening of Tuesday’s London session the price went up to 0.9060. That’s above the former highs at 0.9020. Everybody who speculated at a lower top “around” 0.90 and had a tight stop in place got stopped out. Price reversed sharply on risk aversion during the US session when the “USD Consumer Confidence (FEB)” got released and came in below expectations.

If the AUD/USD keeps declining over the coming days the lower top will form out. Price targets/ support levels are at 0.8810 and 0.8650.