USD/CAD requires caution from traders as it is highly probable that the highs at 1.3597 are also important medium-term highs and that another run towards 1.31 has started. Price is trading inside a long-term sideways upward sloping channel respecting the boundaries all this time.
The USD/CAD pair is trading inside the bearish channel and has broken through cloud support. Trend is bearish in the short-term. Support is at 1.3350 and resistance at 1.3455. A break out of the channel will push price towards 1.35-1.3550.
There are many signs that USD/CAD has made a high of similar importance as it did last time near 1.36. The last time we saw a reversal at 1.36, prices pushed as low as the lower trading range boundary near 1.30. The lower boundary is now close to 1.31. I prefer to sell bounces and open short positions with 1.36 as stop. Once this trading range is broken, expect a strong sell-off in USD/CAD.
The material has been provided by InstaForex Company - www.instaforex.com