Overview:
The market is continuing to show signs of strength following the break at 1.0250 (green horizontal line in the chart). Therefore, the USD/CAD's resistance was broken and turned to support last week (May 17, 2013), as well the pair has already formed a strong support at the level of 1.0250. So, the market indicates a bullish opportunity at the level of 1.0250 with the first target of 1.0350 and continues towards 1.0385. However, If the trend can break this level and closure above 1.0390, then a downside momentum is rather convincing and the structure of the fall looks not corrective, for that the market will indicate a bearish opportunity at 1.0390. Hence, it will be a good sign to sell at this level.
Trading recommendations:
According to the previous events, the price has still been trapped between 1.0325 and 1.0300.
Buy above 1.0250 with the target at 1.0350, then 1.0385.
Below 1.0390 look for further downside with a target of 1.0275.