USD/CAD Weekly Technical Report 31/12/2012 – 4/1/2013

The pair stabilized above the first target of the bearish Butterfly Harmonic Pattern at 0.9930 levels which decreases the pattern’s affect. At the same time, Stochastic is showing overbought signals, as Relative Strength Index fails to keep its bullish bias. Therefore, we remain neutral in our weekly report waiting for confirmation signals.

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

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

Support 0.9930 0.9895 0.9800 0.9770 0.9735

Resistance 0.9950 0.9990 1.0000 1.0040 1.0100

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