FX.co ★ Medium-term forecast and intraday recommendations for USD/CAD (July 03, 2014)

USD/CAD

The pair has been in a downtrend from 1.1279 levels. It grounded to its monthly low. The pair has almost erased its January 2014 gains. In last week's trading session, the pair chopped the 50 week Sma and closed below it, holding near 61.8 fib correction levels. The nearest support is at 1.06 levels. The trading range is framed between 1.0590-1.0716. Until the pair closes above the 50 week Sma, it is seen to remain bearish. The bulls are back on track only above 1.0720 levels. On the upside, it could fly up to 1.0761 above the level of 1.0720, which is a huge resistance and last week's high. On the downside, if the pair chops the 1.0590 level, it can extend its fall up to the level of 1.0560, which is a minor support level. The major panic is likely to emerge below the 1.0560 for 1.0456 (200 weeks Ema) and 1.040 levels.

Intraweek support- 1.0590

Monthly key support- 1.0456

Intraweek view- cmp 1.0666

The pair has support at 1.0660 and resistance between 1.0671-1.0678. In Asia's session, it is trading at the level of 1.0667. For an intraday view, we recommend buying above 1.0678 for 1.0697, 1.0720 and 1.0750 levels. The pair looks weak below 1.0660 look near support levels at 1.0645, 1.0637 and 1.0627. If the pair breaks the previous support, it could hit the nearest strong support zone between 1.0590-1.0560 levels. The previous swing low at 1.0716 would act as the intraweek reversal level.

Intraweek support- 1.0627

Intraweek resistance - 1.0716

Buy above 1.0678