The market will continue showing strength by going to the level of 0.9700 (23.6% of Fibonacci retracement levels - Daily chart). Therefore, the USD/CAD resistance was broken and turned into support nine months ago (on the 4th of August, 2011), the pair has already formed a strong support at the level of 0.97. So the market indicates a bullish opportunity at level 0.9700 with the first objective of 0.985 and continues towards 0.99 then 1.003. However, if the trend does not manage to break through and close above the level of 1.008, then it will be a downside momentum, that 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 downward pace towards 0.9765.
According to previous events, the price remains between 1.0080 and 0.9800.
Buy above 0.97 with target at 0.99 then 1.003.
Below 1.0080 look for further downside pace with a target of 0.976.
Please check out the market volatility before investing, as the sight price may have already been reached and scenarios invalidated.Key level at 0.97.History will probably repeat itself at this level again.
Mourad El Keddani is taking part in the "Analyst of the Year" award organized by MT5.com portal. If you like his article, please vote for him.