FX.co ★ The candlestick analysis of the USD/CAD for 01/06/2010

On a 4-hour chart, the USD/CAD had formed “Bearish Engulfing” candlestick earlier after an intensive upward movement, which became a bearish signal, confirmed thereafter.
This candlestick formed after the currency pair had reached the high of 1.0858 earlier, where the bulls did not managed to strengthen and the bears got down to business. At the same time, USD/CAD broke out the mark of 1.0550, where Fibonacci correction level of 31.8 and the support level of 1.0539 are placed. At the moment, the pair is testing Fibonacci correctional level of 61.8.
Today, the interest rate decision of Bank of Canada is awaited. If the rate is up, USD/CAD can break out Fibonacci correctional level of 61.8 and drop to 1.0251. Also, the market participants say that in this case the US dollar parity can be reached.
If the interest rate is not risen an ascendant movement to the resistance level of 1.0636 and higher is expected. Therefore, in this case earlier opened short positions should be closed.