USD/CAD Weekly Technical Report 19-23/11/2012

The bearish Butterfly Pattern controls trading and we can see that the upside move seen was limited below 1.0040 over four-hour basis which keeps the pattern intact. We expect new downside attempts and a possible test to 0.9920 areas which if breached will extend the downside move toward 0.9850. Stochastic signals lower and RSI is gradually losing the upside momentum.  

The trading range for this week is among the key support at 0.9730 and key resistance at 1.0185.

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

Support 0.9990 0.9965 0.9920 0.9885 0.9850

Resistance 1.0000 1.0040 1.0095 1.0100 1.0135

Recommendation Based on the charts and explanations above, our opinion is selling the pair around 1.0000 targeting 0.9920, 0.9885 then 0.9850 and stop-loss with four-hour closing above 1.0040 might be appropriate this week