USD/CAD intraday technical analysis and trading recommendations for May 8, 2013
May 8, 2013 9:30 am
Price zone 1.0200 – 1.0235, which corresponded to a downtrend line, was broken through obviously last week. The continuation of flag pattern seems to fail due to the strong bearish pressure which pushed the pair again inside the channel below 1.0100.
Bearish rejection around 1.0300 was followed by multiple days of indecision within the same consolidation range 1.0225 – 1.0330 until the pair gave obvious 4H closure below 1.0250 and 1.0200. It led to a quick rally towards 1.0150 then 1.0100. Daily closure below 1.0085 (61.8% Fibonacci), that took place on Friday, will probably open the way towards the next support level around 1.0000-0.9980 especially that there are no signs of obvious bullish rejection until now.
Price action should be watched around 1.0000-0.9980 for a possible BUY entry with SL as 4H closure below 0.9950.
Consolidation above 1.0085 will probably bring bulls to the market to target 1.0135 initially.
The material has been provided by InstaForex Company – www.instaforex.com
Price zone 1.0200 – 1.0235, which corresponded to a downtrend line, was broken through obviously last week. The continuation of flag pattern seems to fail due to the strong bearish pressure which pushed the pair again inside the channel below 1.0100.
Bearish rejection around 1.0300 was followed by multiple days of indecision within the same consolidation range 1.0225 – 1.0330 until the pair gave obvious 4H closure below 1.0250 and 1.0200. It led to a quick rally towards 1.0150 then 1.0100.
Daily closure below 1.0085 (61.8% Fibonacci), that took place on Friday, will probably open the way towards the next support level around 1.0000-0.9980 especially that there are no signs of obvious bullish rejection until now.
Price action should be watched around 1.0000-0.9980 for a possible BUY entry with SL as 4H closure below 0.9950.
Consolidation above 1.0085 will probably bring bulls to the market to target 1.0135 initially.
The material has been provided by InstaForex Company – www.instaforex.com
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