Chart of the Day − USD/CAD

by James Chen
FX Solutions
8/19/2008 – USD/CAD – As shown on the accompanying USD/CAD 4-Hour chart, price action on this pair has formed both a steep uptrend support line (represented in green) and a flag pattern (represented in yellow) since the forceful bullish run in the dollar began several weeks ago. The combination of these two factors hints at a possible impending continuation of the uptrend. The uptrend line is acting as dynamic support, while the flag is indicating a potential continuation of the up-move after breakout. In the event of a strong breakout of the flag, major resistance to the upside resides around the 1.0865 region. Immediate support to the downside, on the other hand, resides around the green uptrend line.