Overview:
Three months ago, the price levels around 1.0620 initiated the current strong uptrend on July 2.
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.
Recently, despite the significant bullish SUPPORT being offered around price zone of 1.1275-1.1230, the USD/CAD pair spiked down to the price level of 1.1190 where the current bullish swing was initiated.
The USD/CAD bulls are currently challenging the latest achieved swing high around 1.1440-1.1465. Temporary bearish rejection has been expressed today.
Bullish breakout above 1.1440 is mandatory for push towards 1.1550 where the upper limit of the ongoing bullish channel is located.
Trading recommendations:
Risky traders can LONG the USD/CAD pair after the market expresses 4H closure above 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 as 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
