FX.co ★ USD/CAD: Technical Analysis for August 16, 2012

History will probably repeat itself again!

Overview:

The market will continue showing bearish strength by moving to the level 0.9905 (00% of Fibonacci retracement levels -- H1 chart). Therefore, USD/CAD support was broken and turned into resistance a week ago (on the 8th of August, 2012); the pair has already formed a strong resistance at the level of 0.9963. So the market indicates a bearish opportunity at the level of 0.9963 with 0.9903 seen as first objective and continues its movement towards 0.9850 and further to 0.9813. However, if the trend does not manage to break through and close below the level 0.9745, then an upside momentum will begin which is rather convincing. The structure of the uprise looks as non-corrective, for that the market will indicate a bullish opportunity at 0.9745, hence it will be a good sign to buy at this level in order to continue the upward movement towards 0.9935.

Trading Recommendations:

According to the previous events, the price remains between 0.9975 and 0.9900.

• Consider the downside movement below 0.9960 with target seen at the 0.9903 level then 0.9850.

Weekly Technical levels:

R3: 1.0098
R2: 1.0059
R1: 0.9984
PP: 0.9945
S1: 0.9870
S2: 0.9831
S3: 0.9756

Observation (s):

Please check out the market volatility before investing, as the sight price may have already been reached and scenarios invalidated.

Key level at 0.9960.

The pair will probably experience the same at this level.

If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.