USD/CAD Forecast February 18, 2012, Technical Analysis

The USD/CAD pair shot straight up during the session on Friday, but failed to break above the 1.01 level yet again. In fact, this latest search created a lower low than the previous two attempts. Because of this, this is a market that looks like it’s trying to breakout at first glance; we really begin to pay attention to things you can see just how resistant the level above is. If that’s the case, then we could see an excellent shorting opportunity. In fact, that’s exactly what we are doing because we feel that the risk reward ratio is definitely there. By putting a stop at roughly 1.0125, you can be assured that it will take quite a bit of force to breakout and a move to that level will more than likely be the real deal. In fact, we shorted this market in the middle of the Friday session.



Written by FX Empire