USD/CAD has been trading downwards since 05.06 when it
tested a high of 1.2561. After the pair moved down within the descending channel. On June 17, USD/CAD tested the upper trendline of the channel and it was rejected. At
the same time, 200 Moving Average was also rejected.
Clearly, the pair is making lower lows and lower highs without
any signs of further correction or reversal up. Currently, USD/CAD is rejecting
R1 (1.2238) resistance, which is 76.4% Fibonacci level applied to a low hit on June 10 and a high hit on June 15.
Everything is pointing out on a downtrend continuation, even
the RSI oscillator just crossed overbought area from above. Consider selling
USD/CAD near R1 (1.2238), targeting at 161.8 Fibonacci retracement level, that is
S2 (1.2103). A break above R2 could trigger a range trading, but the downtrend
will remain intact.
Support: 1.2200, 1.2103
Resistance: 1.2238, 1.2261, 1.2279
The material has been provided by InstaForex Company – www.instaforex.com