In the previous articles, we suggested that the potential downside movement remains valid as long as the pair is trading below 1.0040 and below 1.0000 area, the psychological resistance.
Price zone 0.9900 - 0.9860 (Important Fibonacci Levels) provided strong support expressing strong bullish price action, which is manifest in the giant bullish engulfing daily candlestick.
The USD/CAD pair expressed strong bearish reaction towards 1.0020 - 1.0050, failing to consolidate above 1.0040. This indicated a strong bearish move towards 0.9995; then 0.9945 took place which actually occurred when Intraday Support around 0.9980 was broken down.
The Daily chart showed a narrow consolidation range 0.9905 -0.9955, located few pips above 0.9890 (50% Fibonacci Level) which was being tested yesterday where bullish price action was expressed.
Price Zone 0.9905 - 0.9895 should be defended by the bulls today. Otherwise, the pair will probably reach 0.9855 directly.
Support: 0.9900, 0.9875, and 0.9815.
Resistance: 0.9950, 0.9980, 1.0010, 1.0040, and 1.0080.
- Recommendation
Price zone 1.0025 - 1.0040 provided an excellent long-term SELL entry with SL located above 1.0060, profits should have been taken by now.
Price Zone 0.9915 - 0.9900 provides a valid BUY entry with SL located just below 0.9880. Profits should be taken at mentioned Resistance Levels.
