Overview:
- As expected, the support has broken and turned to resistance at the same key level of 1.2282 (38.2% of Fibonacci retracement levels). Consequently, the resistance of the USD/CAD pair has already set at the price of 1.2282. Also, a minor resistance is placed at 1.2151. Equally important, the price is below the resistances for several days. Furthermore, the price has been still moving between 1.2151 and 1.1942 (the level of 1.1942 is representing a double bottom on the H4 chart). Therefore, the USD/CAD pair started showing the signs of bearish market. Therefore, the market indicates the bearish opportunity at the level of 1.2151 with the first target of 1.2013, and continues towards the level of 1.1942 again. On the other hand, stop loss should always be taken into account for that it will be good to set your stop loss at the price of 1.1025. Nevertheless, it should be noted that the level of 1.1942 is representing a strong support on May 7, 2015. Moreover, the same level is coinciding with the 00% Fibonacci retracement levels. Consequently, the pair is going to form a strong support at the price of 1.1942.
Observations:
- The double bottom will be at the level of 1.1942.
- The major resistance is going to be at 1.2282.
- The price hit the weekly pivot point and the resistance 1 last week.
- We expect a range of 241 pips this week.
