Overview:
- The USD/CAD pair rebounded at the level of 1.2351 (50% of Fibonacci retracement levels). In the long term, the pair has showed signs of strength following the level of 1.2351. This morning, the level of 1.2351 is going to represent a minor support on the H4 chart. Additionally, the resistance has broken and turned into support at the level of 1.2351. Besides, the area of 1.2351 to 1.2360 is acting as a strong spot because the price is above the support since May 26th, 2015. Furthermore, the price has been still trapped between 1.2350 and 1.2599. Therefore, the USD/CAD pair started showing the signs of bullish market, so the market indicates the bullish opportunity at the level of 1.2350 with the first target of 1.2500 and continues towards the level of 1.2580 again in order to test the resistance. On the other hand, the stop loss should always be taken into account. So set your stop loss at the 1.2327 price.
Notes:
- In the long term, the USD/CAD pair is going to move between 1.2350 and 1.2599.
- The resistance will be at the level of 1.2599 and the support has been already placed at the price of 1.2350.
- We expect a new range about 250 pips this week.
- The key level will be at the level of 1.2452.
- The level of 1.2360 will represent the double bottom.
