The market will continue showing strength by going to the level 0.9940 (11% of Fibonacci retracement levels - Daily chart). Therefore, the USD/CAD pair's resistance was broken and turned into support a week ago (on the 7th of May, 2011); the pair has already formed a strong support at the level of 0.9940. So the market indicates a bullish opportunity at level 0.994 with 0.9995 seen as first objective and continues its movement towards 1.0040 and further to 1.0075. However, if the trend does not manage to break through and close above the level 1.008, then a downside momentum will begin which is rather convincing. The structure of the downfall looks as non-corrective, for that the market will indicate a bearish opportunity at 1.008, hence it will be a good sign to sell at this level in order to continue the downward movement towards 0.9935.
Trading Recommendations:
According to previous events, the price remains between 1.0080 and 0.9900.
Buy above 0.9940 with target at 0.9995 then 1.050.
Consider the downside movement below 1.0075 with target seen at the 0.9935 level.
Observation (s):
Please check out the market volatility before investing, as the sight price may have already been reached and scenarios invalidated.Key level at 1.0075.The pair will probably experience the same at this level.
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