FX.co ★ Will USD/CAD establish a temporary bottom around 1.0360 targeting 1.0450 for July 15, 2013

The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around at 1.0530 as depicted in the chart.

Since then, the pair has established a consolidation range between 1.0450-1.0560 that expressed a false bullish breakout above 1.0555.

This false breakout was quickly followed by intesive bearish pressure that led to breakdown of 1.0450 and 1.0380 with a recorded low 1.0325.

As depicted on the chart, the current zone 1.0325-1.0360 constitutes a strong support area where a possible buttom may be established to lead towards 1.0450 initially.

A valid SELL entry may be taken at retesting of 1.0450 with SL located above 1.0510.