Archived IMT (2009.02.26)

USDCAD consolidation persists since November, but range has narrowed to a 5-cent range since January. Considering the trend line support of 1.2360 prevailing since Sep 29, a breach below it would likely be accompanied by a notable bounce in equities near 7,500 on the Dow and 790 on the S&P500. Despite the deteriorating climate for equities and the implications for higher USDCAD, the pair faces increasing resistance at 1.2620.