USD/CAD holding on to intermediate term support at 1.0868

I've been seriously studying the forex market for the past couple of weeks. This post is my first official jab in this area.

What better way than to start with the USD/CAD currency pair as I'm a Canadian myself. And it just so happens that the USD/CAD is at a major pivot these past couple of months. See Figure 1.

The fall of the USD/CAD from a peak around 1.60 in 2003 to below 0.90 in 2007 has been unforgettable. In fact, USD/CAD is still trading around its shadow as seen in the test of both the resistance and support Fibonacci fan lines (Figure 1).

While I'm not ready to predict which way the pair will trend (something that rhymes with yup), it's clear that the fight between 1.0868 - 1.093 will be an important battle. Breaking below or above it would cause a sizable short term move.

[caption id="attachment_1725" align="aligncenter" width="500" caption="USD/CAD 20-year"][USD/CAD 20-year][][/caption]

[USD/CAD 20-year]: http://traderpau.files.wordpress.com/2009/08/2009-08-26-usd-cad.png