Weekly Pivot Point: 1.0060.

Overview:

The market will continue showing strength by going to the level 1.0063 (100% of Fibonacci retracement levels - Daily chart). Therefore, the USD/CAD pair's resistance was broken and turned into support two days ago (on the 16^th of May, 2012); the pair has already formed a strong support at the level of 1.0063. So the market indicates a bullish opportunity at level 1.0070 with 1.0150 seen as first objective and continues its movement towards 1.0185 and further to 1.0215. However, if the trend does not manage to break through and close above the level 1.0215, 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 1.0215, hence it will be a good sign to sell at this level in order to continue the downward movement towards 1.0125.

Trading Recommendations:

According to previous events, the price remains between 1.0080 and 0.9900.

• Consider the downside movement below 1.0215 with target seen at the 1.0125 level then 1.0080.

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 1.0215.

The pair will probably experience the same at this level.

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