The pair established a prominent top around 1.1220 which pushed the USD/CAD pair back to the previous congestion zone between 1.0850 and 1.0960.
This congestion zone provided a considerable support at retesting on February 19. This led again towards 1.1190 where the USD/CAD pair topped on February 21 establishing a possible Double Top reversal pattern.
Price levels of 1.0950 and 1.0850 correspond not only to a previous congestion zone but also to the uptrend line that was initiated in September 2013, thus the market may offer a good BUY opportunity around 1.0900 with stop loss as daily closure below 1.0850.
In the long-term, the bullish demand expressed at 1.0960 is probably pushing towards 1.1235 corresponding to 50% Fibonacci.
Currently, the pair is roughly trapped within a new congestion zone located between 1.0960 and 1.1180.
A bullish breakout is more likely to occur based on the previous weekly candlestick (a bullish hammer) which indicates a strong bullish movement yet to occur.
It's important to note that a daily fixation above 1.1180-1.1235 will probably open the way towards the next resistance level around 1.1650 which corresponds to 61.8% Fibonacci which is prominent on the weekly chart.
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 March 10, 2014 . Thanks for your support on USD/CAD intraday technical levels and trading recommendations for March 10, 2014
No comments:
Post a Comment