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 an advantage and pushed the pair towards the price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart).
Temporary daily closure below 1.0920 took place. However, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction the next day pushed the pair again towards 1.1000.
On the other hand, on 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 is now running in profits. Stop loss should be lowered to 1.0910 to secure some profits.
Other bearish positions can be taken 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 to be located at 1.0865 initially.
On the other hand, the price zone of 1.0875-1.0830 ( extending down to 61.8% Fibonacci Level on the daily chart ) which is being challenged today by the bears, should be watched for a possible bullish price action for upcoming bullish momentum to leave our current SELL position.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via USD/CAD intraday technical levels and trading recommendations for May 8, 2014 . Thanks for your support on USD/CAD intraday technical levels and trading recommendations for May 8, 2014
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