Overview:
During the past few weeks, the USD/CAD pair established a temporary consolidation zone between the price levels of 1.1560 and 1.1670 bullish breakout above which allowed bulls to reach the price levels of 1.1800, 1.1900 and recently 1.2015 where new highs have been visited.
As expected from the nearest support, the price zone of 1.1800-1.1750 provided excellent SUPPORT for the pair. LONG positions were suggested yesterday at retesting. It is running in profits now.
You should also note the newly established short-term channel being expressed since the 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 long-term movement channel.
This channel pattern may indicate bearish reversal, if confirmed, with H4 bearish breakdown of the lower limit of it around price level of 1.1850-1.1870.
Otherwise, if bulls keep defending the recent INTRADAY SUPPORT around 1.1850 down to 1.1800, 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
