USD/CAD intraday technical levels and trading recommendations for January 27, 2014
January 27, 2014 2:10 pm
The bulls managed to reach new price levels (around 1.1170) that haven’t been reached since 2009.
This bullish momentum is purely fundamental-induced due to the positive data from the United States.
Expectations that Federal Reserve would cut the cash facilities at the next meeting enhanced the USD strength against major currencies. However, the USD failed to keep its gains against the CAD, and the USD/CAD pair was pushed again towards 1.1050.
The pair has a significant support zone between 1.0700 and 1.0750 representing the upper limit of consolidation range that got broken this month. Re-testing of this zone will probably provide a valid BUY entry for the mid-term.
The next prominent resistance level is located around 1.1230 corresponding to 50% Fibonacci Level of the bearish movement extending since March 2009 ending in July 2011.
The pair was pushed strongly to the upside after bullish rejection was expressed at the uptrend line that came to meet the pair around 1.0650.
This was followed by bullish breakout above 1.0720 (previous triple-top resistance).
On Thursday, a shooting star daily candlestick was expressed at retesting of 1.1090 then another bearish candlestick was expressed on Friday indicating lack of bullish momentum there.
A prominent SUPPORT zone is located at 1.0960-1.0900. Any further retesting may offer a valid BUY entry with SL as a daily closure below 1.0900.
The material has been provided by InstaForex Company – www.instaforex.com
The bulls managed to reach new price levels (around 1.1170) that haven’t been reached since 2009.
This bullish momentum is purely fundamental-induced due to the positive data from the United States.
Expectations that Federal Reserve would cut the cash facilities at the next meeting enhanced the USD strength against major currencies. However, the USD failed to keep its gains against the CAD, and the USD/CAD pair was pushed again towards 1.1050.
The pair has a significant support zone between 1.0700 and 1.0750 representing the upper limit of consolidation range that got broken this month. Re-testing of this zone will probably provide a valid BUY entry for the mid-term.
The next prominent resistance level is located around 1.1230 corresponding to 50% Fibonacci Level of the bearish movement extending since March 2009 ending in July 2011.
The pair was pushed strongly to the upside after bullish rejection was expressed at the uptrend line that came to meet the pair around 1.0650.
This was followed by bullish breakout above 1.0720 (previous triple-top resistance).
On Thursday, a shooting star daily candlestick was expressed at retesting of 1.1090 then another bearish candlestick was expressed on Friday indicating lack of bullish momentum there.
A prominent SUPPORT zone is located at 1.0960-1.0900. Any further retesting may offer a valid BUY entry with SL as a daily closure below 1.0900.
The material has been provided by InstaForex Company – www.instaforex.com
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