USD/CAD manages to establish temporary bottom around support 1.0275 for August 7, 2013
August 7, 2013 2:30 pm
The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted in the chart. Since then, the pair has 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 applied on the pair to breakdown the previous daily low of 1.0325 then a prominent buttom was established around 1.0260. Since then, the pair has been bullish.
Next most significant resistance level is located around 1.0430 and 1.0460 (the previous congestion zone) where profits should be taken and the price action should be watched for possible SELL entries.
Our suggested BUY entry around 1.0250 is running in profits now, SL should be advanced to 1.0340 to minimize some risk.
Recommendation:
Based on the chart above, our opinion is selling the pair around 1.0460 targeting 1.0335, 1.0280 then 1.0235 and SL as 4H closure above 1.0450.
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. Since then, the pair has 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 applied on the pair to breakdown the previous daily low of 1.0325 then a prominent buttom was established around 1.0260. Since then, the pair has been bullish.
Next most significant resistance level is located around 1.0430 and 1.0460 (the previous congestion zone) where profits should be taken and the price action should be watched for possible SELL entries.
Our suggested BUY entry around 1.0250 is running in profits now, SL should be advanced to 1.0340 to minimize some risk.
Recommendation:
Based on the chart above, our opinion is selling the pair around 1.0460 targeting 1.0335, 1.0280 then 1.0235 and SL as 4H closure above 1.0450.
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: