Pivot Point: 0.9952.
Overview:
The market will continue showing strength by going to the level of 0.9900 (11% of Fibonacci retracement levels). Therefore, the USD/CAD resistance was broken and turned into support two weeks ago (on the 2nd of April, 2011), the pair has already formed a strong support at the level of 0.9900. So the market indicates a bullish opportunity at level 0.9900 with the first objective seen at 0.995 and continues towards 1.0000 then 1.007. However, if the trend does not manage to break through and close above the level of 1.007, then downside momentum will take place, that is rather convincing. The structure of the downfall looks as non-corrective, as the market indicates a bearish opportunity at 1.0065, hence it will be a good sign to sell at this level in order to continue the downward pace towards 0.99.
Trading Recommendations:
According to previous events, the price is still located between 1.0070 and 0.9890.
- Buy above 0.99 with target at 0.9952 then 1.0000.
- Below 1.0065, look for further downside pace with a target of 0.99.
Technical Levels:
R3: 1,0126
R2: 1,0062
R1: 1,0016
PP: 0,9952
S1: 0,9906
S2: 0,9842
S3: 0,9796
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 0.99.
History will probably repeat itself at this level again.
