Overview:
- Yesterday, the trend was calling for a strong bearish market for that it broke most of major supports. So, the USD/CAD pair broke major supports at the levels of 1.4257 and 1.4151. Moreover, the daily pivot point was calculated at 1.4151 and currently the price sets at 0.4130. At this point, we have two probabilities that lies in:
- First case:
- If the trend is able to break the daily pivot point at 1.4151, an upside movement will probably start in this area and recovery will begin again. Thus, the market will indicate a bullish opportunity above the level of 1.4151. It will be a good idea to buy above the level of 1.4151 with the first target at 1.4196 and continue towards 1.4257 in order to test the first support on January 27, 2016.
- Second case:
- The The market is still calling for a strong bearish movement below the spot of 1.4150. In consequence, the trend will call for a bearish market below the level of 1.4150 since there is a bearish channel. Sell below the level of 1.4150 with the first target at 1.4044 in order to form a double bottom, it might resume to 1.3969 (support 1). On the other hand, if a breakout at 1.4151 occurs, it will be a good location for placing stop loss at the level of 1.4200.
Daily technical levels:
- R2: 1.4432
- R1: 1.4257
- PP: 1.4151
- S1: 1.3976
- S2: 1.3870
