FX.co ★ USD/CAD intraday technical levels and trading recommendations for June 4, 2014

The USD/CAD bulls failed to show enough momentum above 1.1200 during the last visit on March 20. The bears took advantage and pushed the pair towards the price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart).

Although previous daily closure below 1.0920 took place, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction on the next day pushed the pair again towards 1.1000.

Later on, the price zone of 1.0875-1.0830 (extending down to 61.8% Fibonacci level and the lower limit of the ongoing movement) provided significant bullish pressure.

The market has shown a significant bullish recovery around 1.0830 (bullish engulfing daily candlestick) aiming to push higher towards 1.0910-1.0950 where significant bearish pressure was applied previously on March 21.

Recent bullish rejection off 1.0820 has been expressed earlier this week. As expected, a bullish visit towards 1.0930 (the upper limit of the ongoing congestion zone) took place shortly after. 

We see the pair may have temporary resistance around these levels. A bearish corrective limb is expected to take place towards 1.0888 ( depicted on the 4H chart ) to collect more buyers to allow a bullish breakout above 1.0950 to take place after a long bullish rally.