Overview:
- The resistance of the USD/CAD pair was broken and it turned into support at the same key level (1.3144). So, support has already been set at the price of 1.3144 and the double bottom was set at the same price too. Equally important, the trend saw the bullish market and the the price is above the support since yesterday. We expect a range of 178 pips (1.3144 - 1.3322) in coming days. As expected, the price will move between 1.3160 and 1.3312. Therefore, the USD/CAD pair started showing the signs of the bullish market from the spot of 1.3160 - 1.3142. Consequently, the market indicates the bullish opportunity at the level of 1.3150 with the first target at 1.3295, and probably continues moving towards the level of 1.3322 (78.6% Fibonacci Expansion).
Trading recommendations:
- Buy above the area of 1.3144 with the target of 1.3322. On the other hand, the stop loss should always be taken into account, hence it will be profitable to set your stop loss at the 1.3104 price.
Observations:
- It should be noted that the level of 1.3144 represents strong support on October 28, 2015. Moreover, the same level coincides with the 50% Fibonacci retracement levels. Consequently, the pair is going to form strong support at the 1.3144 price.
