The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted on the chart. Since then, the pair has established a consolidation range between 1.0450-1.0560 that expressed a false bullish breakout above 1.0555 which was followed by intensive bearish pressure that led to breakdown of 1.0450 and 1.0380 with a recorded low 1.0254.
As depicted on the chart, price zone 1.0325-1.0360 constituted a strong support area. However, strong bearish pressure off 1.0440 was applied on the pair to breakdown previous daily low at 1.0325. Today we should watch carefully as these price zone is being retested.
The next most significant support level is located around 1.0160 (near the low of June). However, price action should be watched initially at 1.0270-1.0250 for any signs of bullish reversal which may give bullish entry with SL located below 1.0215.
For those who already took the trade, the bulls need to have 4H closure above 1.0340 to collect enough momentum to push higher. Otherwise, further testing of 1.0250 is not excluded.
Mohamed Samy is taking part in the “Analyst of the Year” award organized by MT5.com portal. If you like his article, please vote for him.
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Performed by Mohamed Samy, Analytical expert InstaForex Group © 2007-2013 |
USD/CAD manages to establish temporary bottom around support 1.0275 for July 31, 2013
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