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The bullish breakout off the depicted channel allowing the bulls to retest the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was previously formed.
The USD/CAD pair has failed to show enough bullish momentum above price level of 1.0950 during August then a double-top reversal pattern was expressed shortly at retesting.
As we mentioned before, bearish rejection was anticipated after such a long bullish rally that originated off 1.0650 and 1.0710.
A valid SELL position was suggested at retesting which took place last week. Initial bearish target is located around 1.0825 then 1.0770 (considerable Intraday support) .
Conservative traders should wait for higher entry levels to be retested especially around 1.0880-1.0900.
Daily closure below price zone of 1.0870-1.0850 confirms a long-term double-top pattern (on the daily chart) with its projection target located at 1.0770.
On the other hand, daily fixation above 1.0950 (50% Fibonacci level) enables the bulls to shoot towards 1.1020 and 1.1050 initially (very low probability in the meanwhile ).
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 © 2007-2014 |
USD/CAD intraday technical levels and trading recommendations for September 1, 2014
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