FX.co ★ USD/CAD Technical Analysis and Trading Recommendations for January 19 - 20, 2012.

Pivot Point: 1.0133.

Overview:

The market will continue showing strength by following to the level of 1.0060 (1.0041: 23.6% of Fibonacci retracement levels). Therefore, the USD/CAD resistance was broken and turned into support a month ago (the 8th of December, 2011), the pair has already formed a strong support at the level of 1.0060. So the market indicates a bullish opportunity at level of 1.0060 with a 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 1.03, 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 1.027, hence it will be a good sign to sell at this level in order to continue downward pace towards 1.0133 on H4.

Trading Recommendations:

According to previous events, the price has still been trapped between 1.0080 and 1.0270.

• Buy above 1.0060 with target at 1.0130 then 1.02.
• Below 1.0270 look for further downside with a target of 1.0133.

Technical Levels:

R3: 1.0228
R2: 1.0203
R1: 1.0158
PP: 1.0133
S1: 1.0088
S2: 1.0063
S3: 1.0018

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 1.0060.

History will probably repeat itself at this level again.