Overview:
- The USD/CAD pair is continuing to show signs of strength following the break at 1.1214. The new support had set at 1.1266. This support is coinciding with the ratio of 61.8% Fibonacci retracement levels. Therefore, the trend's resistance broke and turned to support three days ago. Another thought is that the price broke the EMA(100) in order to hold an uptrend from the level of 1.1266. Also, it should be noticed that the USD/CAD pair has already formed a minor resistance at the level of 1.1395; so the range will be over bewteen 1.1395 and 1.1266 levels. Accordingly, the market is going to indicate a bullish opportunity at the level of 1.1266 with a first target of 1.1343 and continue towards 1.1395. At the same time, if the trend breaks this level and closes below 1.1214, it will call for downside momentum. It is rather convincing since the structure of the fall doesn't look corrective. Thereupon, the market will indicate a bearish opportunity at 1.1214. Hence, it will be a good sign to sell at this level in the short term.
