FX.co ★ USD/CAD Technical Analysis and Trading Recommendations for December 7th -- 8th, 2011.

Pivot Point: 1.0128.

Overview:

The market is going to continue to show signs of strength following at the level of 1.0040 (23.6% of Fibonacci retracement levels). Therefore the USD/CAD's resistance has broken and it was turned to support a month ago (1st of September 2011), aswell the pair has already formed a strong support at the level of 1.0040. So the market indicates a bullish opportunity on level of 1.0040 with a first target of 1.0130 and continue towards 1.0205. However, If the trend can break and closure below this level 1.0040, then it will be a downside momentum is rather convincing and the structure of the fall looks is not corrective, for that the market will indicate a bearish opportunity at 0.9940 hence it will be a good sign to sell at this level in order to break the double bottom (0.9891) on H4.

Trading Recommendations:

According to previous events, the price has still been trapped between 1.020 and 1.0040.

• Buy above 1.0040 with target at 1.0150 then 1.0280.
• Below 0.9940 look for further downside with a target of 0.98250.

Technical Levels:

R3: 1.0294
R2: 1.0250
R1: 1.0172
PP: 1.0128
S1: 1.0050
S2: 1.0006
S3: 0.9928

Observation (s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios become invalidate.

Key level at 1.0040.

History will probably repeat itself at this level again.