USDCAD Classic Technical Report 10.16.2012
Prices continue to tread water below resistance at a falling trend line set from the June 4 high, now at 0.9824. Overall positioning hints an inverse Head and Shoulders bottom may be in the works, with confirmation to be seen on a daily close above the formation’s would-be neckline at 0.9866. Such an outcome would imply a measured upside target at 1.0149. Initial support lines up at 0.9743, the 23.6% Fibonacci expansion, with a break below that targeting the 38.2% level at 0.9654.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com
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