Overview:
Price levels around 1.0620 (corresponding to the lower limit of the channel) initiated the current strong uptrend on July 2.
Bulls were pushing towards the upper limit of the movement channel (1.1370) in mid-October. Immediate bearish rejection was expressed as anticipated after such a long bullish swing resulting in a bearish correction towards 1.1200.
4H fixation below 1.1230 - 1.1210 ( 50% Fibonacci level ) temporarily allowed bears to push towards 1.1100 ( the lower limit of the bullish channel ) where bullish recovery was expressed.
Recently, bulls have pushed further above price level of 1.1400. However, the upper limit of the movement channel was located around 1.1470 where bearish rejection was anticipated.
Despite the temporary bullish SUPPORT offered around price level of 1.1275, the USD/CAD pair continued trending-down towards 1.1190 ( Significant Fibonacci Level and the lower limit of the ongoing channel ) as anticipated in previous articles.
Trade Recommendations:
As anticipated before, 4H chart reveals that price level of 1.1320 should have been watched for price action. It corresponds to the upper limit of the current congestion zone as well as the upper limit of the movement channel.
An Intraday SELL entry off this price level can was offered at retesting. The USD/CAD pair now has a potential target at 1.1150 where the lower limit of the channel is located.
