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USD/CAD Breaks Back Below Channel Trend Line

|Includes: CurrencyShares Canadian Dollar Trust ETF (FXC)

The USDCAD (NYSEARCA:FXC) is back into the channel after accelerating the trend higher on the move above topside trend line yesterday afternoon (see red area) and into the Asian session today (highest level reached since January 16th).

The move back into the channel came on a break below 1.0172 and this is now topside resistance for the pair this morning. The downside now targets at 1.0121, then the 100 hour MA (blue line) at 1.0095. Below that the 50% retracement of the weeks move higher at the 1.0089 will be eyed. Finally, the 200 hour MA and bottom channel support comes in at the 1.0051 level.

http://www.forexlive.com/blog/2012/05/18/usdcad-breaks-back-below-channel-trend-line/