Overview:
The market is continuing to show the signs of strength following the break of 1.0200 (green horizontal line in the chart). USD/CAD's resistance was broken and turned to support last week (February 22, 2013). The pair has already formed a strong support at the level of 1.0200. So the market indicates a bullish opportunity at the level of 1.0200 with a first target of 1.02450 and continuation towards 1.0185. However, if the trend fails to break this level and closes below 1.0300, then a downside momentum is rather convincing and the structure of the fall is not corrective. The market will indicate a bearish opportunity at 1.0300. Hence it will be a good sign to sell at this level with a first target at 1.0250. Then it will continue towards 1.0200 in order to retest the support.
Trading recommendations:
According to the previous events, the price is still trapped between 1.0220 and 1.0250.
Buy above 1.0200 with target at 1.0245, then at 1.0290.
Observation(s):
Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.
Key level is at 1.0200 and 1.2900/1.03.
History will probably repeat itself at this level again.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.