Overview:
The market is continuing to show the signs of strength following the break of 1.0110 (red horizontal line in the chart). USD/CAD's support was broken and turned to resistance of yesterday (May 7, 2013). The pair has already formed a strong resistance at the level of 1.0110. So, the market indicates a bearish opportunity at the level of 1.0110 with the first target of 1.0080 and continuation towards 1.0015. However, if the trend fails to break this level and closes below 0.9940, then an upside momentum is rather convincing and the structure of the rise is not corrective. The market will indicate a bullish opportunity at 0.9940. Hence it will be a good sign to buy at this level with a first target at 1.0050. Then it will continue towards 1.0120 in order to retest the support.
Trading recommendations:
According to the previous events, the price is still trapped between 1.0100 and 1.0075.
- Sell below 1.0110 with the first target at 1.0070, then it will be gone towards 0.9940 in order to test this strong support.
- Buy above 0.9940 (if the trend fails to close below it) with target at 1.0060, then at 1.0120.
If you have any questions or requests, please feel free to contact me: mourad.elkeddani@analytics.instaforex.com.
