- The price of the USD/CAD pair is continuing to
show signs of strength following the break of resistance at the level of 1.2135
(23.6% of Fibonacci retracement levels). Also, it should be noted that the
level of 1.2135 represents strong support in the H4 chart this week. Therefore,
the USD/CAD pair resistance was broken and turned to support last week.
Moreover, the pair has already formed the strong support at 1.2135. So, the market
indicates a bullish opportunity in the area of 1.2135/1.2150 with a target at
1.2315 and continues toward the second resistance at the level of 1.2376. At
the same time frame, the ratio of 50% Fibonacci retracement levels coincides
with the level of 1.2376. If the trend breaks this level and closes below the
key level (1.2130), it will be rather convincing downside momentum. The
structure of the fall does not look corrective. So, the market will indicate a
bearish opportunity at 1.2115. It will be a good sign to sell at this level
with targets at 1.2027 (the support has already been placed at 1.2027) and
1.1919 in order to test the double bottom.
The material has been provided by InstaForex Company – www.instaforex.com