USD/CAD (1.1041)
LOOKING FOR RETRACE...


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This pair closed at 1.1041 still looking weak on the charts and it might retest the low of 1.0930. It'll retrace if it breaks the big resisting trendline which is connected from the high of 1.4010 on May 2004 and again it connected at 1.2694 on May 2005 on the course of the huge fall it tried couple of times to break the big trendline one in later part of the March 2006 and first week of April 2006 but it couldnt. And again it tried to surpass the trendline in July 2006. But thru out the month it traded above the trendline with negative bias and once again now closed just below the trendline. So anytime it breaks the trendline, if do so then go long in this pair with the stop loss of 1.0930 for the target of 1.1275/1.1405 and 1.1470. Taking fundamentals into thsi pair then it wont go beyond 1.1470. Weekly RSI is heading towards extreme oversold region. Take a risk of 110 pips and go long. The first target gives u 234 pips and second target gives u 364 pips.