USD/CAD Weekly Technical Report 8-12/10/2012

The pair started this week to the downside, yet we can see that it remains stable above the Linear Regression Indicators. In general, the pair is trading below the main resistance for the downside wave and Stochastic is trading negatively and RSI breached 50 to the downside. Therefore, we expect the pair to resume the downside wave this week as far as the resistance areas of 0.9870 remains intact.

The trading range for this week is among the key support at 0.9395 and key resistance at 0.9935.

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

Support    0.9715    0.9680    0.9625    0.9585    0.9515
Resistance    0.9760    0.9800    0.9825    0.9870    0.9935
Recommendation    Based on the charts and explanations above, our opinion is selling the pair below 0.9770 targeting 0.9680, 0.9625 then 0.9585 and stop loss with four-hour closing above 0.9870 might be appropriate this week