USD/CAD: intraday technical levels and trading recommendations for December 11, 2013
December 11, 2013 4:15 pm
Five months ago, a prominent bottom was established around 1.0260. This happened after the intensive bearish momentum that led to the monthly low at 1.0254.
An important key level was located around 1.0505. This was the key level for the previous weeks movement as the re-closure below it enabled the pair to break down 1.0455 as well, where the lower limit of the depicted consolidation range was located.
The nearest support zone was located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180 where obvious bullish rejection was expressed to get the pair back above 1.0250 again resulting in a bullish Hammer weekly candlestick.
As expected, the bullish momentum was expressed at retesting of the lower limit of the ongoing channel around 1.0280 pushing it higher towards 1.0460, and then 1.0500 which was bypassed.
The price level around 1.0570 remains the nearest support for the pair.
Last week, the bulls established an ascending bottom around 1.0400 after a period of consolidation between 1.0400-1.0500.
Daily fixation above 1.0475 enabled the pair to reach 1.0575, 1.0600, and then 1.0650 where a previous top “established on October 2011” is located.
In the previous article, price zone 1.0650-1.0700 was suggested for a possible sell position with SL located above 1.0750. It’s running in profit now, some profits should be taken at 1.0570 to avoid possible bullish rejection.
Breakdown of 1.0570 opens the way towards 1.0500 then 1.0470.
The material has been provided by InstaForex Company – www.instaforex.com
Five months ago, a prominent bottom was established around 1.0260. This happened after the intensive bearish momentum that led to the monthly low at 1.0254.
An important key level was located around 1.0505. This was the key level for the previous weeks movement as the re-closure below it enabled the pair to break down 1.0455 as well, where the lower limit of the depicted consolidation range was located.
The nearest support zone was located around 1.0250. On September 19, the pair expressed a false breakdown reaching 1.0180 where obvious bullish rejection was expressed to get the pair back above 1.0250 again resulting in a bullish Hammer weekly candlestick.
As expected, the bullish momentum was expressed at retesting of the lower limit of the ongoing channel around 1.0280 pushing it higher towards 1.0460, and then 1.0500 which was bypassed.
The price level around 1.0570 remains the nearest support for the pair.
Last week, the bulls established an ascending bottom around 1.0400 after a period of consolidation between 1.0400-1.0500.
Daily fixation above 1.0475 enabled the pair to reach 1.0575, 1.0600, and then 1.0650 where a previous top “established on October 2011” is located.
In the previous article, price zone 1.0650-1.0700 was suggested for a possible sell position with SL located above 1.0750. It’s running in profit now, some profits should be taken at 1.0570 to avoid possible bullish rejection.
Breakdown of 1.0570 opens the way towards 1.0500 then 1.0470.
The material has been provided by InstaForex Company – www.instaforex.com
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