Great USDCAD Analysis 01.04.12

I have an account with sunbirdfx and I was impressed with this accurate analysis that I tought I should share it with you all…
The Canadian dollar has been strengthening against the USD for several years and the most recent bearish session began on 2008, until it found a strong support on mid 2011. During the first months of last year, we spotted the double-bottom pattern on the pair’s weekly chart and estimated that the pair was about to break-through 1.0.We set the target at the 200 SMA, around 1.06, and the price crossed above this level and reached to 1.065. These 650 pips were the best trade that Sunbird’s research team suggested during 2011.
The level of 1.07 has been a strong resistance that the pair could not break-through since the end of 2009. The direction of the pair will be determined this year by the general trend of the USD, but no doubt that this resistance is an important obstacle that the pair has to go through. If it succeeds, we might see the price climbing towards 1.13-1.15 during 2012.

The Canadian dollar continues strengthening against the USD and it is approaching an important support in both daily & weekly charts. The pair made the “Bear-Flag” pattern in the daily chart, above the support of 0.990, and a strong break-down there might pull the price down to 0.975-0.97. However, the continuation of the strengthening of the major currencies and the CAD against the USD is depended on Wall Street and if the stock do not continue rising, the USD might start correct. In this case, a break-up of the 3-weeks high at 1.005-1.007 might start a “short-squeeze” towards 1.015-1.02.