Overview :
- The market is going to continue to show signs of strength at the level of 1.1755 which represents the rate of 61.8% Fibonacci retracement levels. Therefore, the resistance of the USD/CAD pair has broken and it turned to support for five months (January 8, 2014), so the pair has already formed strong support at the level of 1.1755 and the second support will be found around the area of 1.1718. Additionally, according to the previous events, the USD/CAD pair has still been trapped between 1.1760 and 1.1834. Hence, the market indicates the bullish opportunity at the level of 1.1755 with the first target of 1.1807 and continues towards 1.1836. But it should noted that the strong resistance will set at the level of 1.1873 (the double top in H1 chart). On the contrary, the stop loss is to be placed below the level of 1.1718. This level is representing a new double bottom in the H1 chart. However, If the trend cannot break and close above the level of 1.1873, then it will be a rather convincing downside momentum and the structure of the fall will not be corrective, for that the market will indicate a bearish opportunity at the level of 1.1873. Consequently, strong resistance will be formed at the level of 1.1873 providing a clear signal for sell deals with the targets seen at 1.1795 and 1.1755 in order to test the first support.
The material has been provided by InstaForex Company - www.instaforex.com
