USD/CAD technical analysis for June 5, 2013

Overview: 

The market is continuing to show signs of strength following the break at 1.0250 (green horizontal line in the chart). Additionally, USD/CAD’s resistance was broken and turned to support last week. Furthermore, the pair has already formed a strong support at the level of 1.0250. Consequently, the market indicates a bullish opportunity at the level of 1.0250 with the first target of 1.0350 and continues towards 1.0385. Otherwise, If the trend can break this level and closure above 1.0390, then a downside momentum is rather convincing, and the structure of the fall does not look corrective, for that the market will indicate a bearish opportunity at 1.0390. Therefore, it will be a good sign to sell at this level. Subsequently, according to the previous events, the price has still been trapped between 1.0325 and 1.0300. Hence, it is recommended to buy above 1.0250 with the target at 1.0350, subsequently 1.0385. On the other hand, below 1.0390 look for further downside with a target of 1.0275.