USD/CAD intraday technical levels and trading recommendations for March 19, 2014
March 20, 2014 4:50 am
Previous congestion zone between 1.0850 and 1.0960 provided a considerable support at retesting on February 19. This led again towards 1.1190 where the USD/CAD pair topped on February 21 establishing a double-top reversal pattern.
Price levels of 1.0950 and 1.0850 correspond not only to a previous congestion zone but also come to meet the uptrend line that was initiated in September 2013, thus the market offered a good BUY opportunity around 1.0960 with stop loss as daily closure below 1.0850.
Currently, the pair is roughly trapped within a new congestion zone located between 1.0960 and 1.1190.
Daily fixation above 1.1200-1.1230 (Weekly 50% Fibonacci level) opens the way for a higher target around 1.1660 (61.8% Fibonacci).
A symmetrical triangle was expressed on the 4H chart. Lower highs and higher lows are were being established until bullish breakout took place today.
Bullish fixation above 1.1060 is a must to collect enough momentum to push higher.
Bullish pattern (ascending bottoms) is depicted on the chart. This indicates a strong bullish movement above 1.1190 to follow through.
On the other hand, bearish rejection around 1.1200 will keep the pair trapped within the current congestion zone giving more time for sideway consolidation.
The material has been provided by InstaForex Company – www.instaforex.com
Previous congestion zone between 1.0850 and 1.0960 provided a considerable support at retesting on February 19. This led again towards 1.1190 where the USD/CAD pair topped on February 21 establishing a double-top reversal pattern.
Price levels of 1.0950 and 1.0850 correspond not only to a previous congestion zone but also come to meet the uptrend line that was initiated in September 2013, thus the market offered a good BUY opportunity around 1.0960 with stop loss as daily closure below 1.0850.
Currently, the pair is roughly trapped within a new congestion zone located between 1.0960 and 1.1190.
Daily fixation above 1.1200-1.1230 (Weekly 50% Fibonacci level) opens the way for a higher target around 1.1660 (61.8% Fibonacci).
A symmetrical triangle was expressed on the 4H chart. Lower highs and higher lows are were being established until bullish breakout took place today.
Bullish fixation above 1.1060 is a must to collect enough momentum to push higher.
Bullish pattern (ascending bottoms) is depicted on the chart. This indicates a strong bullish movement above 1.1190 to follow through.
On the other hand, bearish rejection around 1.1200 will keep the pair trapped within the current congestion zone giving more time for sideway consolidation.
The material has been provided by InstaForex Company – www.instaforex.com
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