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 1.2045 where new highs have been visited.
As expected from the nearest H4 support, the price zone of 1.1800-1.1750 provided excellent SUPPORT for the pair. LONG positions were suggested 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 1.2050. It happened because 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 the price zone of 1.1800-1.1750 with tight SL placed slightly below 1.1730.
Counter-trend risky traders can wait either for a bullish spike towards 1.2090 or for H4 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
