Overview:
- The USD/CAD pair continues to show signs of strength following a breakout at 1.4468. The new support is found at 1.4468. This support is coinciding with a ratio of 88.2% Fibonacci retracement levels. Therefore, the trend's resistance was broken and turned to support yesterday. Another thought is that the price broke the EMA (100) in order to hold an uptrend from the level of 1.4468. Also, it should be noticed that the USD/CAD pair has already formed a minor resistance at the level of 1.4601 (a new double bottom today); so the range is seen between the levels of 1.4468 and 1.4601 now. Accordingly, the market is going to indicate a bullish opportunity at the level of 1.4468 with the first target at 1.4575 and continue towards 1.4601. At the same time, if the trend breaks this level and closes below 1.4468, it will call for downside momentum. It is rather convincing since the structure of the fall does not look corrective. Thereupon, the market will indicate a bearish opportunity at 1.4468. Hence, sell at this level in the short term. But generally, the trend is still calling for the strong bullish market, for that it should never go against the trend nowadays.
