USD/CAD Intraday Technical Analysis and Trading Recommendations for July 6, 2012
On Friday the USD/CAD pair expressed a massive bearish reaction towards the price level of 1.0355 making a quick bearish movement of about 200 pips reaching price levels around 1.0160 and exceeding the Average Daily Range by about 75 pips.
During this week, USD/CAD has been moving downwards but within narrow range zone and without obvious swings which indicates a possible change in the current bearish direction which was proved yesterday with obvious bullish reaction towards the lower limit of the Yellow channel around 1.0099 manifested in the bullish engulfing 1H candlestick.
Today a bullish breakout above the depicted movement channels happened some time ago giving more confirmation that a possible coming bullish movement is about to take place.
Price Level of 1.0140 which corresponds to the backside of the broken Yellow & Blue channels is now considered as a strong Intraday Support Level where a valid low-risk BUY entry can be taken with SL located below 1.0090 while TP levels are to be located at 1.0180 then 1.0240.
The material has been provided by Instaforex Company - instaforex.com
Service provided by InstaForex