Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel. Successive higher highs and lows are being established within the channel’s limits.
As anticipated, the bullish breakout above 1.1440 allowed bulls to push towards 1.1650 where the upper limit of the bullish channel is located as well as 61.8% Fibonacci level of the previous prominent bearish swing.
During the past few weeks, the USD/CAD pair established a temporary consolidation zone between 1.1430-1.1330 and recently around 1.1480. Bullish breakout above these zones allowed bulls to reach new highs around 1.1540 and 1.1670.
The price zone of 1.1430-1.1460 remains the nearest SUPPORT zone for the current prices. It corresponds with the lower limit of the daily channel as well as the previous high that goes back to November.
Persistence above this zone signaled the bullish tendency towards 1.1660-1.1690 (significant RESISTANCE zone).
The price level of 1.1650 (which was our final bullish target) roughly corresponded with the upper limit of the bullish channel as well as 61.8% Fibonacci level.
Risky traders should look for SHORT positions around the price level of 1.1650. SL should be located above 1.1700.
Conservative traders should be looking for a pull-back towards 1.1440 for a LONG position. SL should be set as daily closure below 1.1400.
The material has been provided by InstaForex Company – www.instaforex.com