USD/CAD technical analysis and trading recommendations for May 3, 2013

Overview:

The market is continuing to show the signs of strength following the break of 1.0180 (red horizontal line in the chart). USD/CAD’s support was broken and turned to resistance of last two weeks (April 26, 2013). The pair has already formed a strong resistance at the level of 1.0180. So, the market indicates a bearish opportunity at the level of 1.0180 with the first target of 1.0100 and continuation towards 1.0010. However, if the trend fails to break this level and closes below 1.0000, then an upside momentum is rather convincing and the structure of the rise is not corrective. The market will indicate a bullish opportunity at 1.0000. Hence it will be a good sign to buy at this level with a first target at 1.008. Then it will continue towards 1.0140 in order to retest the support.

Trading recommendations:

According to the previous events, the price is still trapped between 1.0140 and 1.0100.

Sell below 1.0180 with the first target at 1.0100, then it will be gone towards 1.0000 in order to test this strong support.
Buy above 1.0000 (if the trend fails to close below it) with target at 1.0080, then at 1.0140.

Observation(s):

Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.
Key level is at 1.0000.
History will probably repeat itself at this level again.

If you have any questions or requests, please feel free to contact me: [email protected].

The material has been provided by InstaForex Company – www.instaforex.com

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