Intraday pivot point:
1.0572Overview:
The market continues showing signs of strength following the break at 1.0521 (resistance has become support). Therefore, the USD/CAD's resistance has been broken and it was turned to support two weeks ago (November 21, 2013). Moreover, the pair has already formed a strong support at the level of 1.0521. So the market indicates a bullish opportunity at the level of 1.0520 with the first target of 1.0570 and continues towards 1.0650. However, if the trend fails to break this level and closure above 1.0675, then a downside momentum is rather convincing and the structure of the fall looks not corrective. Additionally, the market will indicate a bearish opportunity at 1.0670, hence it will be a good sign to sell at this level. Then, below 1.0670, look for further downside with a target of 1.0566.
Intraday technical levels:
R3: 1.0684 R2: 1.0643 R1: 1.0613 ------------ S1: 1.0542 S2: 1.0501 S3: 1.0471
Observations:
Key level is at 1.0566. Range: 71 pips. A risk to reward ratio of 1:1.5 is recommended; risk of 71 pips must make a profit of 106.50.