USD/CAD: Technical analysis and trading recommendations for February 15, 2013

 loonie 15 USD/CAD: Technical analysis and trading recommendations for February 15, 2013  

Overview:

The market is continuing to show signs of strength following the break of 0.9950 (green horizontal line in the chart). USD/CAD’s resistance was broken and turned to support two weeks ago (January 24, 2013). The pair has already formed a strong support at the level of 0.9950. So the market indicates a bullish opportunity at the level of 0.9950 with a first target of 1.0020 and continuation towards 1.0100. However, if the trend fails to break this level and closure below 1.0000, then a downside momentum is rather convincing and the structure of the fall is not corrective. The market will indicate a bearish opportunity at 1.0100. Hence it will be a good sign to sell at this level with a first target at 0.9990. Then it will continue towards 0.9950 in order to retest the support.

Trading recommendations:

According to the previous events, the price is still trapped between 1.0000 and 1.0085. Buy above 0.9950 with target at 1.0015, then at 1.0090. Below 1.0100 look for further downside with a target of 0.9990.

Observation(s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.
Key level is at 1.0100.
History will probably repeat itself at this level again.

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

The material has been provided by InstaForex Company – www.instaforex.com

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