Overview:
Three months ago, the price levels around 1.0620 (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 new highs around 1.1495 and 1.1535 which got hit today.
The price zone of 1.1430-1.1460 remains a key zone for this week's remaining trading sessions. Persistence above it signals the bullish tendency towards 1.1550 initially and 1.1650 to come next.
Trading recommendations:
Although, LONG positions suggested after the USD/CAD pair closed above 1.1450 were considered high-risk ones, they're are running in profits towards their targets (the price level of 1.1650 yet to come).
However, conservative traders should minimize the risk and advance their SL to entry levels (or slightly below - around 1.1420, for example).
The material has been provided by InstaForex Company - www.instaforex.com
