Technical analysis of USD/CAD for May 6, 2015 Market Analysis Review

Overview:

• The market of the USD/CAD pair is going to continue showing the signs of weakness and condition of lacking strength following the level of 1.2154 (23.6% of Fibonacci retracement levels). Consequently, the level of 1.2150 has been representing strong resistance for that the USD/CAD pair support was broken and turned to resistance on the H1 chart yesterday. Furthermore, according to the previous events, the price has been still moving between 1.2150 and 1.1914. The double bottom will be at the point of 1.1914 at the same price. So, if the trend cannot break and close above the level of 1.2150, it will be rather convincing downside momentum and the structure of the fall does not look corrective, so the market will indicate a bearish opportunity below the level of 1.2150. Therefore, it will be a good sign to sell at this level in order to continue downwards to 1.1914 to test double bottom. Moreover, if the USD/CAD pair breaches the double bottom at the level of 1.1914, the trend will form a fresh low around 1.1881.

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