Canadian Dollar (CAD) Technical Major Currencies (2012-05-02)

The pair ended the trading session yesterday down, forming a spinning top like formation after it was rejected near 0.9900 area. Accordingly, we continue to count on the previously breached bearish pattern to expect further downside today, where we consider the current rally as a mere retest to the breached ascending trend line of the pattern, where any deeper upside corrections should be well capped below the 50-days SMA and 0.9970 horizontal resistance for the bearish bias to remain dominant.

The trading range for this day is expected among the key support at 0.9750 and resistance at 0.9975.

The short term trend is to the downside targeting 0.9400 with steady daily closing below 1.0070.

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