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Thursday, January 26, 2012

USD/CAD Technical Analysis and Trading Recommendations for January 26, 2012.

Pivot Point: 1.0073.


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Overview:

The market will continue showing strength by following to the level of 0.9960 (11% of Fibonacci retracement levels). Therefore, the USD/CAD resistance was broken and turned into support a month ago (on the 30th of October, 2011), the pair has already formed a strong support at the level of 0.9960. So the market indicates a bullish opportunity at level of 0.9960 with the first objective of 1.0130 and continues towards 1.02. However, if the trend does not manage to break through and close above the level of 1.02, then it will be a downside momentum, that is rather convincing and the structure of the downfall looks non-corrective, for that the market will indicate a bearish opportunity at 1.0200, hence it will be a good sign to sell at this level in order to continue downward pace towards 1.0010 on H4.

Trading Recommendations:

According to previous events, the price is still trapped between 1.0020 and 1.0270.
  • Buy above 0.9960 with target at 1.0133 then 1.0200.
  • Below 1.0200, look for further downside pace with a target of 1.0010.

Technical Levels:

R3:1.0238
R2:1.0193
R1:1.0118
PP:1.0073
S1:0.9998
S2:0.9953
S3:0.9878

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 0.9960.
History will probably repeat itself at this level again.

InstaForex

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