Technical analysis
Mourad El Keddani
Pivot Point: 1.0306.
Overview:
The market is going to continue to show signs of strength following at the level of 1.0040 (23.6% of Fibonacci retracement levels). Therefore the USD/CAD's resistance has broken and it was turned to support a month ago (1st of September 2011), aswell the pair has already formed a strong support at the level of 1.0040. So the market indicates a bullish opportunity on level of 1.0080 with a first target of 1.0395 and continue towards 1.0480. However, If the trend couldn't break and closure above the level of 1.0512, 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 1.0512 hence it will be a good sign to sell at this level in order to continue downward towards 1.0385 on H4.
Trading Recommendations:
According to previous events, the price has still been trapped between 1.0080 and 1.0512.
- Buy above 1.0080 with target at 1.04 then 1.048.
- Below 1.052 look for further downside with a target of 1.038.
Technical Levels:
R3:1.0497
R2:1.0423
R1:1.0380
PP:1.0306
S1:1.0263
S2:1.0189
S3:1.0146
R2:1.0423
R1:1.0380
PP:1.0306
S1:1.0263
S2:1.0189
S3:1.0146
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 1.0283.
History will probably repeat itself at this level again.
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