USD/CAD Weekly Technical Report 3-7/12/2012

The thin trading last week kept the pair below 38.2% correction of the CD Leg of the bearish Butterfly Harmonic Pattern. According to harmonic rules, stability below this correction is considered a reason for extending the negativity reaching the second target at 61.8% correction at 0.9855. Linear Regression Indicators are negative and Relative Strength Indicator is stable below 50 supporting the negative harmonic expectations.

The trading range for this week is among the key support at 0.9735 and key resistance at 1.0135.

The short term trend is expected to the downside with daily closing below 1.0125 targeting areas of 0.9400. 

Support 0.9895 0.9855 0.9805 0.9770 0.9735

Resistance 0.9935 0.9980 1.0000 1.0040 1.0095

Recommendation Based on the charts and explanations above, our opinion is selling the pair below 0.9930 targeting 0.9855, 0.9805 then 0.9735 and stop-loss with four-hour closing above 1.0000 might be appropriate this week