FX.co ★ USD/CAD Medium-term and longer-term bullish outlooks, November 12, 2010 (Daily Signal)

The negative sentiment reappears on the financial markets. Moreover, the U.S. dollar recovers and re-strengthened against a basket of major currencies. The disappointing data published recently could represent a sign of the beginning of a downward corrective wave on the stock market, compared to the wave on the USD/CAD pair. The positive deviation on the MACD indicator and the fact that the pair stopped at the previous low level around 1.0000 and created a pattern of investment - 'double floor', give an substantial support to the potential upward sequence.
A closing above the 1.0110 resistance level offers the opening of long position on the pair with an exit point near the significant resistance level of 1.0275 and the area near 200-day moving average.