21.02.201404:26 Forex Analysis & Reviews: Technical analysis of USD/CAD for February 21, 2014

Long-term review

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Unemployment benefit claims fell last week due to two consecutive months of weak hiring. In January CPI was up 0.01%. The Fed gave a clear picture of their further monetary policy. The USD gained more strength and rallied further. USD/CAD has done a great job. It rallied from 1.0910 to 1.1113. In the beginning of this week, we recommended the USD pairs attractive trade setup near crucial support zone. Everything's gone good.

The pair was unable to cross the crucial resistance level of 1.1124. The pair formed a triple top at the level of 1.1124 (hourly chart) and went through a correction. In the yesterday's trading session the pair was unable to touch the resistance level and made a high at the level of 1.1113. Currently it is acting as resistance and 1.1094 as a support level. To break either side, we can't see further price action.

In the hourly chart RSI indicating a negative divergence. If the price trades above the resistance level of 1.1113, it can fly up to 1.1124 and 1.1133.

Intraday -

S1 1.1090 R1 1.1113

S2 1.1081 R2 1.1124

S3 1.1059 R2 1.1133

Positional-

S1 1.1024 R1 1.1124

S2 1.0952 R2 1.1133

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