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Wednesday, May 9, 2012

USD/CAD Technical Analysis and Trading Recommendations for May 9, 2012


Pivot Point: 0.9990.



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Overview:

The market will continue showing strength by going to the level 0.9700 (23.6% of Fibonacci retracement levels - Daily chart). Therefore, the USD/CAD pair's resistance was broken and turned into support nine months ago (on the 4th of August, 2011), the pair has already formed a strong support at the level of 0.97. So the market indicates a bullish opportunity at level 0.9700 / 0.99 with 0.9975 seen as first objective and continues its movement towards 1.0025 and further to 1.0060. However, if the trend does not manage to break through and close above the level 1.006, then a downside momentum will begin which is rather convincing. The structure of the downfall looks as non-corrective, for that the market will indicate a bearish opportunity at 1.006, hence it will be a good sign to sell at this level in order to continue downward pace towards 0.9910.

Trading Recommendations:

According to previous events, the price remains between 1.0080 and 0.9900.
  • Buy above 0.9910 with target at 0.9975 then 1.050.
  • Consider the downside movement below 1.0060 with target seen at the 0.9910 level.

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 1.0060.
History will probably be repeated at this level.

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