USD/CAD (+150)

with Canada Central Bank expected to raise interest rates to 1%, and U.S. providing better than expected job report on Friday, it is reasonable to expect strong movement in CAD favor. European debt crisis and the concern for the stability of European banks is the main driver of USD move higher and of the latest "flight to safety" lift the pair up to 1.0475 from 1.0345. As far as the further move up, we think that is the less likely option in this pair, and the bulls had plenty of chances for that since pair made it's potential high for the day (1.0488).From technical perspective we have 100 and 50 SMA serve as resistance,as well as 50% fib retracement, and MACD is well bellow water line indicating downtrend. Risk is relatively small compared with profit opportunity. Stops are placed at 1.0525, and target is 1.0345 and possible 1.0265 if market moves strongly in CAD favor and if rates are lifted to 1% & building permits as well as IVEY PMI mark better than expected results.