Overview:
Since bulls pushed the price further above the upper limit of both depicted bullish channels and the 79.6% Fibonacci level, the market has looked quite overbought. That is why, the price failed to hold above 1.2650 - 1.2680 (previous highs) resulting in a formation of a Triple-top pattern.
Successive lower highs were reached within the depicted consolidation zone enhancing the bearish side of the market.
Support levels around 1.2350 and 1.2300 (79.6% Fibonacci level) were broken after providing significant support for several weeks on the daily and weekly charts.
Daily fixation below 1.2300 opened a way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend) for the USD/CAD pair. Bullish support was offered around these levels. A bullish pullback took place shortly after.
Recently, the price zone of 1.2450-1.2500 constituted strong resistance (backside of the broken uptrend and the previous consolidation zone).
As anticipated, a daily candlestick closure below 1.2430 (previous week) enhanced further bearish decline. Since then, the price zone around 1.2400 constitutes solid intraday resistance for the USD/CAD pair.
However, the previous weekly candlestick closed at 1.2270 (market indecision). We need frank weekly closure below 1.2300 to ensure further bearish decline in the long term.
If the current weekly candlestick closes below 1.2200, the weekly uptrend is likely to get breached soon.
Otherwise, persistence above 1.2220 enhances a bullish pullback towards 1.2330 and 1.2400.
Hence, the price zone of 1.2300-1.2330 should be watched at retesting for a valid SELL entry if enough bearish rejection is expressed on the short-term charts.
The material has been provided by InstaForex Company - www.instaforex.comFor detail explanation and best discovery on daily market trends and news you may visit via USD/CAD intraday technical levels and trading recommendations for June 22, 2015 . Thanks for your support.
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