Previous congestion zone between 1.0850 and 1.0960 provided a considerable support at retesting on February 19. This led again towards 1.1190 where the USD/CAD pair established a consolidation zone between 1.0960 and 1.1190.
Yesterday, the USD/CAD pair expressed obvious bullish momentum that led to bullish breakout above 1.1190-1.1220.
Daily fixation above 1.1200-1.1230 (Weekly 50% Fibonacci level) opens the way for a higher target around 1.1660 (61.8% Fibonacci).
Bullish pattern (ascending bottoms) is depicted on the chart. As expected, this indicated a strong bullish movement above 1.1190 which already took place Yesterday.
On the other hand, the USD/CAD pair isn't showing enough bullish momentum above 1.1200. This may indicate lack of enough bullish momentum in the market.
Note that if bearish rejection is applied around 1.1200, this will keep the pair trapped within the current congestion zone below 1.1190 again giving more time for sideway consolidations.
Price level around 1.1150 is considered a prominent Support for the pair.
Any further retesting will probably offer a valid buy entry with SL located just below 1.1100.
The material has been provided by InstaForex Company - www.instaforex.com
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