FX.co ★ Technical analysis of USD/CAD for February 12, 2015

Overview:

• The market is continuing to show signs of strength following the break level of 1.2466. Therefore, the resistance of the USD/CAD pair has broken and it was turned to support this week. Furthermore, the pair has already formed a strong support at the level of 1.2460. So the market indicates a bullish opportunity at the level of 1.2466 with the first target of 1.2574 and continues towards 1.2624 (the first weekly resistance). However, If the trend cannot break this level and closure above it (1.2624), it will be a downside momentum, which is rather convincing. The structure of the fall is not corrective, for that the market will indicate a bearish opportunity at 0.2624 and it will be a good sign to sell at this level with the targets of 1.2574 and 1.2521.

Trading Recommendations:

• Due to the previous events, the price is still between the levels of 1.2624 and 1.2521.
• Buy above the level of 1.2466 with target at 1.2774 and then at 1.2620.
• Below 1.2624 look for further downside with a target of 1.2521.