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 price level of 1.1400. However, the upper limit of the movement channel was located around 1.1470 where 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 price level of 1.1190 where the current bullish spike was initiated.
The USD/CAD bulls are currently challenging the latest achieved swing high around 1.1440-1.1465. Temporary bearish rejection was expressed Yesterday.
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:
The market offered a previous valid BUY entry at retesting of price level of 1.1225 ( the lower limit of the depicted channel ). Stop Loss should be set as daily closure below 1.1220.
Risky traders can LONG the USD/CAD pair after the market expresses 4H closure above price level of 1.1450 (This is a high risk position).
Potential long-term bullish target is located at 1.1500 and 1.1550 ( the upper limit of the depicted movement channel ).
The material has been provided by InstaForex Company - www.instaforex.com
