Overview:
- The USD/CAD pair continues to show signs of strength following the break at 1.3245. The level of 1.3250 represents strong support this week. Therefore, resistance has been broken and turned support yesterday. Moreover, the pair has already formed strong support at the level of 1.3240. So, the market indicates a bullish opportunity at the level of 1.3240 with a target at 1.3275 and continues toward the second objective at the level of 1.3309. Also, the ratio of 100% Fibonacci retracement levels is coinciding with 1.3309. If the trend breaks this level and closes below the key level (1.3240), we will see downside momentum rather convincing. The structure of the fall is not expected to be corrective, for that the market will indicate a bearish opportunity at the level of 1.3219. Accordingly, it will be a good sign to sell at this level wirh support at the level of 1.3219.
Comment:
- The weekly pivot point at 1.3219 could hit the moving average (100).
- Stop loss should never exceed your maximum exposure amounts.
- As a rule, the market is highly volatile if the previous day had a high volatility (168.97).
