Technical analysis of USD/CAD for July 7, 2015

Overview:

• The resistance of USD/CAD is set at the level of 1.2828; therefore, bears are going to sell below 1.2834, because there is a double top at the price of 1.2834. So it should be also noted that the resistance is at the level of 1.2828. In the short term, it is recommended to sell during the correction and open short trades below 1.2834 with targets at 1.2690. By the way, the trend will call for a bullish market at the level of 1.2573, there is a bullish channel. Additionally, an upside momentum is rather convincing and the structure of the rise does not look corrective. In order to indicate a bullish opportunity above 1.2600, in consequence it will be a good sign to buy above 1.2600 with the first target of 1.2750. It is equally important that it will call for an uptrend in order to continue bullish trend towards 1.2834. On the other hand, it is worthy of note that the price at 1.2573 will possibly form strong support (88.2% of Fibonacci retracement levels in H1 chart).

Warning:

• The stop loss should never exceed your maximum exposure amounts. Thus, set a stop loss below the support 1.2546.

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