Canadian Dollar Cross Pick 03.12.10
The USD/CAD extended the decline from the end of February and weakened for the eleventh day to reach a fresh yearly low of 1.0154, and the decline certainly looks to be overdone as the RSI slips to 29. Despite the resilience in the Canadian dollar, the pair appears due for a corrective retracement, and I certainly expect to see a rebound in the exchange rate over the following week. As a result, I have placed a long entry at 1.0223, the January low, and will target the 20-Day SMA at 1.0390, with the stop at the yearly low of 1.0154.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.