Price action on USD/CAD, a daily chart of which is shown, has attempted a bullish retracement after falling to yet another support level, this time around the 1.1200 level. Recently, this pair has been exhibiting textbook downtrend behavior, with drops to successively lower support levels followed by minor bullish corrections. The current situation appears to be no different. Any continuation of the current bullish retracement should meet strong resistance in the key 1.1470-80 price region. Any breakdown below current support around 1.1200 should target dynamic support around the long-term uptrend support line extending from the November 2007 low, followed by the important 1.0800 level further to the downside.
UPDATE: As of Wednesday (5/27/2009) morning, price action on this currency pair has indeed broken down well below the 1.1200 level after an apparently failed bullish retracement. The directional bias currently continues to be bearish, with further downside support targets still valid as outlined above.
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