Overview:
- The trend of the USD/CAD pair is going to turn to bullish sentiment from the level of 1.2976. Additionally, the price of 1.2976 is coinciding with the double bottom and the ratio of 78.6% Fibonacci retracement levels on the four-hour chart. Accordingly, it will be a good sign to buy above 1.2976 with the first target of 1.3130 to test a minor resistance at this price and it should be noted that the price of 1.3130 is representing the weekly pivot point. Besides, it will call for an uptrend in order to continue its bullish movement towards 1.3207 (double bottom). Equally important, the resistance will be set at the 1.3207 level. So, it will be very useful to take profit at this spot. At the same time, the stop loss should be placed below the double bottom at the price of 1.2643. On the other hand, as it is known, sellers are asking for a higher price as well as buyers are bidding at a lower price. Therefore, the first key level will be at the level of 1.3207; and the second key level, at the 1.3130 level for August 19, 2015. Moreover, the level of 1.3207 is representing the resistance and the 1.2976 level is going to act as the support. Additionally, the price of the USD/CAD pair has been still moving between 1.3207 and 1.2976.
Observations:
- The range today will be about 231 pips (1.3207 and 1.2976) this week. Another thought: the stop loss has been set in 77 pips. Consequently, the risk of 77 pips should make a profit of 231 pips.
- The trend was very clear and indicating an uptrend, but on the H1 chart, the trend will call in bearish market from the double top at 1.3207 in the short term.
