After weak non-farm payroll data released last Friday, the relative strength of Dollar to Canadian Dollar is naturally balanced. Losing the support at 1.3420 has indicated that the recovery from 1.3130 will be completed soon. Unfortunately, decisive break there will complete a head and shoulder term pattern (ls: 1.3445, h: 1.3470, rs: 1.3435).Further decline should be seen to 23.6% retracement of 1.3460 to 1.3130 at 1.3390 and 38.2% of Fibber at 1.3340. On the upside, though, break of 1.3430 will turn focus back to 1.3460 and 1.3550 resistance instead.
The target is 1.3340. Turning point: 1.3430. Under 1.3430, bearish , target price is set at 1.3390, then 1.3340. Above 1.3430, bullish , target price is 1.3460,then 1.3550.
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