The chart shows that the USD/CAD bulls failed to show enough momentum above 1.1200 during the last visit on March 20. The bears took advantage and pushed the pair towards the price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart).
Although previous daily closure below 1.0920 took place, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction on the next day pushed the pair again towards 1.1000.
On the other hand, in the 4H chart, the price zone of 1.0995-1.1045 (38.2% Fibonacci of the most recent bearish swing) was expected to provide a valid sell entry and it did.
The previously suggested bearish position taken at 1.0995 achieved its full projection target by hitting 61.8% Fibonacci level on the daily chart around 1.0830.
Later on, price zone of 1.0875-1.0830 (extending down to 61.8% Fibonacci level and the lower limit of the ongoing movement ) provided significant bullish pressure.
The market has shown significant bullish recovery around 1.0830 (bullish engulfing daily candlestick) aiming to push higher towards 1.0910-1.0950 and probably 1.0980 where 38.2% Fibonacci level is located on the 4H chart. However, price levels around 1.0920 paused the bullish limb and allowed the bears to resume their bearish momentum towards 1.0840 again.
Bearish positions can be taken again at the price zone of 1.0940-1.0950. It's the most recent resistance zone that comes to meet the pair. Bearish targets are estimated to be at 1.0910 and 1.0950 initially. SL should be located slightly above 1.1000.
Bearish breakdown of 1.0840 will exposed 1.0800 immediately where 61.8% Fibonacci level is located.
The USD/CAD pair will probably establish a sideway consolidation zone between 1.0930-1.0830 for sometime before bearish breakout can take place towards the lower limit of the ongoing channel around 1.0770.
The material has been provided by InstaForex Company - www.instaforex.com
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