Daily Technical Report : September 12, 2014
ICN.com | Sep 12, 2014 04:56AM ET
The pair stabilized between 1.2885 and 1.2960 this week despite achieving the lowest around 1.2857. As showing on graph graph, the volatile trading is dominating the pair. Linear Regression Indicators are still negative but its significant to stabilize below the support 1.2885 to confirm extending bearishness and cancel any possibility of a correctional bullish wave.
As for today, we remain neutral despite that the overall negative outlook is still valid, but we will wait to break 1.2885 before taking any position.
The pair almost retested 1.6285 and remained stable below it accompanied by Stochastic moving towards overbought areas, hence, we still favor the downside move on the short term by stabilizing below the referred to level targeting mainly 1.6000. A break above 1.6285 halts the bearish scenario and pushes the pair towards 1.6625.
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USDCAD pair managed to move sharply to the upside and breached 61.8% correction at 1.1025 - 1.1030 showing on graph. The mentioned upside move failed the negative expectations, and trading above these levels triggers further bullishness targeting 1.1125 represented in 76.4%, and perhaps 88.6% correction at 1.1205 later.
Breaking 1.0950 and stabilizing below it with a daily closing could fail the current bullish wave, while stabilizing above 1.0985 strengthens the bullish possibility.
The pair is still applying a negative pressure and broke the support showing on graph and might extend the downside move in the upcoming sessions, whereas the next target resides at the pychological barrier 0.9000. SMA 50 is still supporting the expected bearish wave that remains valid unless the pair breaches 0.9095 and 0.9190.
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