FOREX ANALYSIS: USDCAD Classic Technical Report 10.25.2012
Prices completed an inverse Head and Shoulders bottom chart formation with a break above the setup’s neckline, implying a measured upside target at 1.0140. The move likewise cleared resistance at a falling trend line set from the June 4 swing high, reinforcing the case for an upside scenario. Buyers are now testing initial resistance at 0.9943, the 38.2% Fibonacci retracement, with a break higher exposing the 50% level at 1.0039. Trend line resistance-turned-support is at 0.9837.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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