Tue, 29 Mar 2011 10:12:00 +0200

Forex: USD/CAD drops back towards 0.9740

FXstreet.com (Barcelona) - The USD/CAD fails to maintain overnight gains which brought the pair above 0.9780, and has eased back once again towards yesterday´s low of 0.9740. In early trading over Europe, the pair seems to find firm support at that level, currently consolidated to the upside of it as traders await fresh direction.

The ecPulse Analysis team reports: “The pair stabilized below the downside channel’s resistance level, where SMA was able to protect trading within it. Meanwhile, Stochastic is giving off negative signs that point to more levels that will make the expected bearish trend easier, with upcoming targets around 0.9600. In return, note that the breach of resistance levels between 0.9800 – 0.9840 could postpone our suggested bearish scenario.”

They go on to suggest: “The trading range for today is among the key support at 0.9600 and the key resistance at 0.9840.The short term trend is to the upside as far as 1.0665 remains intact with targets at 0.9000.”

Technical Analysis (2011-03-29 08:00 GMT)
USD/CAD 0.975/0.9752 - O: 0.9807 H: 0.981 L: 0.9804 C: 0.9806
Trend	R3: 0.9802
	R2: 0.9777
	R1: 0.9753
	S1: 0.9698
	S2: 0.9723
	S3: 0.9747