USD/CAD Weekly Technical Report 17-21/12/2012

The pair is trading again around 0.9855 which represents the second target of the bearish Harmonic Butterfly Pattern. Stability below the referred to level might extend the downside move, Stochastic shows the pair getting near to overbought levels and the descending channel that organized trading from the Top D is still supporting the bearishness. Linear regression Indicators tend to be positive and Relative Strength Index breached 50 to the upside. Therefore we remain neutral in our weekly report waiting more details for the intraday direction.

The trading range for this week is among key support at 0.9690 and key resistance at 1.000.

The general trend over short term basis is to the downside below levels 1.0125 targeting 0.9400.

Support 0.9825 0.9800 0.9770 0.9735 0.9690

Resistance 0.9880 0.9900 0.9935 0.9950 1.0000

Recommendation Based on the charts and explanations above, we remain neutral for now awaiting more confirmations for the next move