USDCAD: Rallies, Resumes Broader Upside.

[FXTechstrategy]

USDCAD: With USDCAD rallying to resume its broader upside, further strength is likely in the days ahead. Further out, resistance resides at the 1.0750 level. Above here if seen will aim at the 1.0800 level. Its daily RSI is bullish and pointing higher suggesting further upside. On the other hand, support lies at the 1.0700 level where a violation will aim at the 1.0650 level where a violation will aim at the 1.0600 level. A reversal of roles is likely to occur here and turn USDCAD higher but if that fails, further decline could occur towards the 1.0550 level with a break turning attention to the 1.0500 level.. All in all, USDCAD continues to face further upside threats.

[piplaser]

The pair is trading with a bearish bias. It is expected the pair will bounce at the support 1.29089. In an alternative scenario, should the price break below this level, the pair may move further down to the level 1.2799.

[piplaser]

Overview:

When bulls pushed the price further above 79.6% Fibonacci level, the market looked quite overbought. That is why, the price failed to hold above 1.2650 - 1.2680 (previous highs), resulting in ower highs (within the depicted consolidation zone) enhancing the bearish side of the market.

A daily fixation below 1.2300 opened the way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend).

Bullish support was found around these levels. Successive higher lows were reached. Bullish pressure was applied against the resistance levels at 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick was quite bullish. That is why, an extensive bullish movement is seen on the chart.

A bullish breakout above the zone of 1.2770-1.2800 has been executed.

The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be expected. Bulls are approaching this level today.

Bearish corrective movement towards the level of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the current Fibonacci Expansion zone at 1.3270-1.3300.

On the other hand, bearish persistence below 1.3050 is needed to expose the next support level around 1.2910 and then 1.2800 where long-term buy entries can be considered.

Trading recommendations:

Conservative traders should wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level constitutes a strong support.

Stop Loss should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.

On the other hand, risky traders can sell the USD/CAD pair at the current levels (anywhere around 1.3270) with S/L to be located above 1.3360.

T/P levels to be located at 1.3200 and 1.3050.