Overview:
Three months ago, the price levels around 1.0620 (around the lower limit of the depicted chart) initiated the current strong uptrend.
Recently, bulls were pushing towards the upper limit of the movement channel (1.1370) in mid-October. Immediate bearish rejection was expressed resulting in a bearish correction towards 1.1200.
4H fixation below 1.1230 - 1.1210 (50% Fibonacci level) temporarily allowed bears to push towards 1.1100 (the lower limit of the bullish channel), where extensive bullish support was offered.
Recently, bulls have pushed further above the price level of 1.1400. However, the upper limit of the movement channel was located around 1.1470 where the bearish rejection was applied.
As anticipated, the bullish breakout above 1.1440 is important to push towards 1.1550 where the upper limit of the ongoing bullish channel is located.
During the past few weeks, the USD/CAD pair established a recent SUPPORT zone around 1.1430-1.1330, breakout above which allowed the bulls to reach a new high around 1.1495.
Price zone of 1.1430-1.1460 is a key zone for today's movement. Persistence above it signals the bullish tendency towards 1.550 initially. Otherwise, another bearish correction towards 1.1400 should not be excluded.
Trading recommendations:
Risky traders can LONG the USD/CAD pair after the market expresses 4H closure above the price level of 1.1450 (it is a high risk position).
Conservative traders still can SHORT the pair around the current prices with Stop Loss at daily closure above 1.1470. Targets would be located around 1.1310 and 1.1230.
The material has been provided by InstaForex Company - www.instaforex.com
