USD/CAD Weekly Technical Report 26-30/11/2012

The pair declined to breach the first target of the bearish Butterfly Pattern, which might extend the downside move toward the second target at 0.9855 at 61.8% correction. We might see the extension of the downside move beyond the second target especially as the Linear Regression indicators crossed negatively and RSI holds below 50, which might drive the pair toward the first extended target at 0.9800. On the other hand, we cannot ignore the volatility due to the oversold signs on Stochastic but trading below 0.9980 keeps the bearish outlook intact for the week.

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 0.9800 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