Technical analysis of CAD/USD for April 16, 2015

Overview:

• The market is going to continue showing signs of strength at the level of 1.2200. Therefore resistance has been broken and turned to support (since the 22nd of January, 2015), so the pair has already formed strong support at the level of 1.2200 (look at the daily chart).

• Additionally, according to the previous events, the USD/CAD pair has still been moving between 1.2200 and 1.2390. Thus, the market indicates the bullish opportunity at the level of 1.2200 with the first target at 1.2335 and continues towards 1.2387. On the contrary, stop loss is to be placed below the level of 1.2200. This level is representing a new double bottom in the H4 chart and daily charts. However, If the trend can break and close below the level of 1.2200, it will be a downside momentum rather convincing and the structure of the fall is unlikely to be corrective. For that, the market will indicate a bearish opportunity at the level of 1.2200. Consequently, strong resistance will be formed at the level of 1.2200 providing a clear signal for sell deals with the target seen at 1.2137.

The material has been provided by InstaForex Company – www.instaforex.com