Overview:
Price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel.
During the past few weeks, the USD/CAD pair established a temporary consolidation zone between price levels of 1.1560 and 1.1670 bullish breakout above which allowed bulls to reach price levels of 1.1800, 1.1900 and recently 1.2015 where new highs have been scored.
As a conservative trader, you should know that price zone of 1.1800-1.1750 remains the nearest SUPPORT zone for the current prices. LONG positions are suggested at retesting this price zone.
You should also note the ascending channel being expressed since price level of 1.1750 extended up to 1.2000 as the market looks quite overbought since bulls have pushed further above the upper limit of the movement channel.
This channel pattern may indicate bearish reversal, if confirmed, with bearish breakdown of the lower limit of it around price level of 1.1850-1.1870 (the most recent SUPPORT zone).
As long as bulls keep defending the recent INTRADAY SUPPORT around 1.1850, the market bias remains positive.
Trading recommendations:
LONG positions are suggested at retesting price zone of 1.1800-1.1750. SL should be placed slightly below price level of 1.1730.
Counter-trend risky traders can wait for a bearish breakout below 1.1850 to SELL the USD/CAD pair aiming for 1.1750 and 1.1680.
The material has been provided by InstaForex Company - www.instaforex.com
