Overview:
Three months ago, the price levels around 1.0620 initiated the current strong uptrend on July 2.
Recently, 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 extensive bullish support was offered.
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 significant bullish SUPPORT offered around price level of 1.1275, the USD/CAD pair spiked down to price level of 1.1190 ( the lower limit of the ongoing channel ).
On the other hand, the price level of 1.1320 ( corresponding to the upper limit of the the movement channel ) once provided enough bearish pressure to push towards 1.1220 ( temporary bearish breakout of the depicted channel was achieved then ).
Bullish breakout off the depicted channel took place earlier today. This enhances the bullish side of the market.
Trade Recommendations:
The market will probably offer a valid BUY entry at retesting of price level of 1.1275 ( backside of the broken channel ). Stop Loss should be set as daily closure below 1.1222.
Potential long-term bullish target is located at 1.1500 ( the upper limit of the depicted movement channel ).
