Last week’s US Non-farm payrolls added some optimism to the market. Investors weren’t inclined to risk. Despite the fact that on Friday the sales of the Canadian Dollar and crude oil increased, the former retraced a bit.
This week USDCAD will probably be rallying within a narrow range until the important fundamentals on the US economy are made public. The news reports haven’t been informative enough so far. Investors will wait for the results of the meeting of the EU finance ministers in Brussels. The amount of pending homes in Canada will also be interesting for investors. In June’s value is expected to grow up to 184K versus 183.6k in May.
Movement layouts. Monthly-Daily-Н1 USD/CAD. July 12th 2011.
1. Upward scenario (CP1…)
Support level: 0,9563 is critical for this variant of movement. The scenario will be canceled if the level is overcome.
Resistance levels:
Volatility indicator “Saks Channel” - Н1: 0,9659-0,9713.
Local high: 0,9911. BUY target grid of the basic indicator: 0.9662-0.9693-0.9773.
2. Flat scenario (Flat-zone):
Support level: 0,9693
Resistance level: 0,9563.
For the flat scenario these levels are critical. If there is some widening of the flat, the levels may see false breakouts. However, the deviation mustn’t exceed 161.8%. Thereby, in this case the price mustn’t come out of the buy-zone or sell-zone. The 161.8% support level inside the buy-zone and the 161.8% resistance level inside the sell-zone are critical for this scenario and cancel it if they are violated.
3. Downward scenario (CP1-CP2-CP3)
Resistance level: 0,9693 is critical for this variant of movement. The scenario will be canceled if the level is overcome.
Support levels:
Volatility indicator “Saks Channel” - Н1: 0,9605-0,9551-0,9497.
Local low: 0,9444. SELL target grid of the basic indicator: 0,9540-0.9521-0,9490.
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Provided by the Department of mid-term trading and GTMT, .
