Overview:
- The market is going to continue to show signs of strength at the level of 1.0800. Therefore the USD/CAD's resistance has been broken and it turned to support for five months (January 8, 2014), so the pair has already formed strong support at the level of 1.0800. Additionally, according to the previous events, the USD/CAD pair has still been trapped between 1.0885 and 1.0841. Hence, the market indicates the bullish opportunity at the level of 1.0800 with the first target of 1.0873 and continues towards 1.0925. On the contrary, stop-loss is to be placed below the level of 1.0800. This level is representing a new double bottom in the H4 chart. However, If the trend cannot break and close above the level of 1.0930, then it will be a downside momentum rather convincing and the structure of the fall will not be corrective, for that the market will indicate a bearish opportunity at the level of 1.0930. Consequently, strong resistance will be formed at the level of 1.0930 providing a clear signal for sell deals with the target seen at 1.0813 in order to test the double bottom.
