Since the USD/CAD pair failed to show enough bullish momentum above 1.1200 during the last visit on March 20, the pair has been downtrending within the depicted bearish channel, which managed to push towards the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was established.
As depicted on the chart, bullish rejection was expressed at retesting of the lower limit of the bearish channel around 1.0630 (It's the origin of the previous bullish impulse initiated in December 2013 as well).
A valid BUY entry was suggested. Expected targets got visited around 1.0750 and 1.0820.
The USD/CAD pair had a strong resistance zone located between 1.0830 (61.8% Fibonacci Level) and 1.0945 ( 50% Fibonacci Level of the same bearish swing ).
The price zone around 1.0940 (50% Fibonacci Level ) remains the nearest Intraday resistance level that comes to meet the pair.
Bearish rejection may be anticipated at retesting especially after such a long bullish rally that originated off 1.0650 and 1.0710. However, daily closure above which enables the bulls to shoot towards 1.1050 initially.
On the other hand, the price level of 1.0775 remains the nearest support to meet the pair where a valid BUY entry may be taken with Stop Loss below 1.0715.
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 August 4, 2014 . Thanks for your support on USD/CAD intraday technical levels and trading recommendations for August 4, 2014
No comments:
Post a Comment