Overview:
The USD/CAD pair established a temporary consolidation zone between the price levels of 1.1560 and 1.1670. This price zone roughly corresponds to 61.8% prominent WEEKLY Fibonacci level bullish breakout above which allowed bulls to establish a new consolidation zone between 1.2000-1.1930.
The prominent H4 support near the price zone of 1.1800-1.1750 provided excellent SUPPORT for the pair last Thursday. LONG positions were suggested at retesting.
Note the newly established short-term channel being expressed since the price level of 1.1750 reached up to 1.2080. The market looks quite overbought since bulls have pushed further above the upper limit of both depicted bullish channels. Hence, bulls should be conservative with their targets.
The nearest SUPPORT zone to meet the USD/CAD pair is located around 1.2015 - 1.1950 where a recent consolidation zone was established as well as the broken upper limit of the depicted channel that waits for retesting.
Otherwise, if bulls keep defending the recent INTRADAY SUPPORT around 1.2110, a new bullish swing may be established without further retesting of 1.1950.
Trading recommendations:
LONG positions should be anticipated around the new SUPPORT zone around 1.2015-1.1950. SL should be located below 1.1900. TP to be placed at 1.2100 and 1.2220.
The material has been provided by InstaForex Company - www.instaforex.com
