USD/CAD intraday technical levels and trading recommendations for August 27, 2013
August 27, 2013 2:45 pm
The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted in the chart. This happened when the pair 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 seen 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.
On Tuesday, the bulls managed to break through above 1.0360. That is why the price level of 1.0460 has been visited quickly as expected.
Another significant Supply Level is located around 1.0505 (a previous mid-range). This was the key level for last week’s movement as closure above it enabled the pair to reach 1.0560, where the upper limit is located.
Re-closure below 1.0505 puts bearish pressure again to get back towards 1.0460 and if this happens, there will be a high probability to extend the bearish movement towards 1.0350.
Yesterday the market expressed an inside daily bar which represents weakness of the ongoing bullish momentum, with failure of the bulls to push through the high around 1.0533 today which enhances bearish retracement at the current levels provided that the pair manages to break below the low around 1.0495.
The price level around 1.0560 remains the nearest considerable resistance for the pair until it is broken to the upside.
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. This happened when the pair 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 seen 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.
On Tuesday, the bulls managed to break through above 1.0360. That is why the price level of 1.0460 has been visited quickly as expected.
Another significant Supply Level is located around 1.0505 (a previous mid-range). This was the key level for last week’s movement as closure above it enabled the pair to reach 1.0560, where the upper limit is located.
Re-closure below 1.0505 puts bearish pressure again to get back towards 1.0460 and if this happens, there will be a high probability to extend the bearish movement towards 1.0350.
Yesterday the market expressed an inside daily bar which represents weakness of the ongoing bullish momentum, with failure of the bulls to push through the high around 1.0533 today which enhances bearish retracement at the current levels provided that the pair manages to break below the low around 1.0495.
The price level around 1.0560 remains the nearest considerable resistance for the pair until it is broken to the upside.
The material has been provided by InstaForex Company – www.instaforex.com
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