Breakthrough of 1.0360 becomes confirmed. Will the USD/CAD react bearishly around 1.0460? For August 21, 2013
August 21, 2013 4:30 pm
The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted in 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 the breakdown of 1.0450 and 1.0380 with a record low of 1.0254.
As depicted in the chart, the price zone of 1.0325-1.0360 constituted strong support area. However, strong bearish pressure at 1.0440 was applied on the pair to breakdown the previous daily low of 1.0325 then a prominent bottom was established around 1.0260. Since then, the pair has been bullish until significant bearish pressure was applied around 1.0430-1.0440.
A SELL entry was suggested around Resistance 1.0460 which has not been reached recently. Instead, bearish momentum was initiated earlier around 1.0440. This opens the way towards 1.0275 (Prominent Support) where a buy entry was suggested upon watching bullish price action there.
As expected, yesterday the bulls managed to breakthrough above 1.0360. That’s why, Price level 1.0460 has been visited quickly as expected. Price action should be watched around 1.0460 for a possible SELL entry with SL as daily closure above it.
Failure to fixate above 1.0460 puts bearish pressure to get back towards 1.0375 again and if this happens next, there will be a high probability this time to extend the bearish movement towards 1.0270 again.
Another significant Supply Level is located around 1.0505 (a previous mid-range).
The material has been provided by InstaForex Company – www.instaforex.com
The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted in 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 the breakdown of 1.0450 and 1.0380 with a record low of 1.0254.
As depicted in the chart, the price zone of 1.0325-1.0360 constituted strong support area. However, strong bearish pressure at 1.0440 was applied on the pair to breakdown the previous daily low of 1.0325 then a prominent bottom was established around 1.0260. Since then, the pair has been bullish until significant bearish pressure was applied around 1.0430-1.0440.
A SELL entry was suggested around Resistance 1.0460 which has not been reached recently. Instead, bearish momentum was initiated earlier around 1.0440. This opens the way towards 1.0275 (Prominent Support) where a buy entry was suggested upon watching bullish price action there.
As expected, yesterday the bulls managed to breakthrough above 1.0360. That’s why, Price level 1.0460 has been visited quickly as expected. Price action should be watched around 1.0460 for a possible SELL entry with SL as daily closure above it.
Failure to fixate above 1.0460 puts bearish pressure to get back towards 1.0375 again and if this happens next, there will be a high probability this time to extend the bearish movement towards 1.0270 again.
Another significant Supply Level is located around 1.0505 (a previous mid-range).
The material has been provided by InstaForex Company – www.instaforex.com
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