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Wednesday, October 19, 2011

USD/CAD Technical Analysis and Trading Recommendations for October 19, 2011.


Forecast

Mourad El Keddani



Pivot Point: 1.0176

Overview:
The market is continuing to show signs of strength following the break at 1.0000 (Horizontal line of a green color on the chart). Therefore the USD/CAD's resistance has broken and it was turned to support a month ago (16th of September 2011), aswell the pair has already formed a strong support at the level of 1.0000. So the market indicates a bullish opportunity on level of 1.0000 with a first target of 1.0200 and continue towards 1.0320. However, If the trend can break this level and closure below 1.0000, then it will be a downside momentum is rather convincing and the structure of the fall looks is not corrective, for that the market will indicate a bearish opportunity at 0.9930 hence it will be a good sign to sell at this level.

Trading Recommendations:
According to previous events, the price has still been trapped between 1.0000 and 1.0400.
  • Buy above 1.0000 with target at 1.0150 then 1.0300.
  • Below 0.9930 look for further downside with a target of 0.9730.

Technical Levels:
R3:1.0394
R2:1.0329
R1:1.0241
PP:1.0176
S1:1.0088
S2:1.0023
S3:0.9935

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 1.0000.
History will probably repeat itself at this level again.

http://instaforex.com/forex_analysis/41815/?x=OUE
InstaForex

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