Last week I offered two possible trades scenarios for the USDCAD. With yesterday's close we can see that price tried to break the levels we talk about. This trade is still relevant, so let's see what we should be looking for so we can attack this pair.  First if we look to the Daily charts we can see that our range still holds( 1.0030 -.9910) in fact yesterday price tried to break but closed below. Our first scenario is a Bearish scenario. We want to see price break out of this range to the down side. We will then be looking for price to close and hold below .9910. I do not want to see price immediately close back above .9910.  If we get the hold that should open the doors to the next support area being .9800. Our second scenario will be a Bullish one. If price breaks to the up side, if this happens again I want to see price close and hold the 1.0030 level. we also want to see the RSI indicator cross the 50 for extra Bullish support. If price closes and holds above 1.0030 and we get the cross of the RSI indicator this should open the doors to around 1.0192.

USDCAD

USDCAD trade setup for February 28, 2012

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USD/CAD Pivot Points (Time Frame: 1 Day)

 

Name S3 S2 S1 Pivot R1 R2 R3

Classic
0.9989
0.9995
1.0001
1.0007
1.0013
1.0019
1.0025

Fibonacci
0.9995
1.0000
1.0003
1.0007
1.0012
1.0015
1.0019

Camarilla
1.0003
1.0004
1.0005
1.0007
1.0007
1.0008
1.0009

Woodie's
-
0.9995
1.0000
1.0007
1.0012
1.0019
-

DeMark's
-
-
1.0010
1.0006
0.9998
-
-