- The USD/CAD pair is expected to face strong resistance at the level of
1.3280 and this level is coinciding with a ratio of 78.6% Fibonacci retracement
levels. Equally important, the price is still moving between 1.3144 and 1.3251.
Also, the USD/CAD pair is still below 78.6% of Fibonacci retracement levels
since last week. As a result, the price has already formed the strong
resistance at 1.3280/1.3251 and it is now approaching it in order to test it.
Moreover, it should be noted that the level of 1.3251 is the key level today.
Therefore, the USD/CAD pair will get downside momentum rather convincing and the
fall does not look corrective, for indicating a bearish opportunity below the level
of 1.3280 for that it will be a good sign to sell below 1.3280/1.3250 with the
first target of 1.3226 (this level is coinciding with the weekly pivot point).
It will call for downtrend in order to continue bearish towards 1.3141. On the
other hand, the stop loss should always be taken into account, Hence, it will
be useful to set your stop loss at the level of 1.1313.
- Also it should be noted that the USD/CAD pair is still calling for bullish market in the daily chart.
The material has been provided by InstaForex Company – www.instaforex.com