FX.co ★ Technical analysis of USD/CAD for July 23, 2014

Overview:

• The price of USD/CAD pair is continuing to show signs of strength following the break at the price of 1.0620. The level of 1.0620 is representing a strong support this month as well as the double bottom in H4. Therefore, the USD/CAD pair resistance has broken and it has turned to support for a month. Moreover, the pair has already formed the strong support at the level of 1.0620. So, the market indicates a bullish opportunity at the level of 1.0620 with the target of 1.0788. It should be noted that the ratio of 50% Fibonacci retracement levels coincides with the price of 1.0788. Another thought, if the trend breaks this level and closes below the key level (1.0788), then it will be a rather convincing downside momentum. The structure of the fall does not look corrective, for that the market will indicate a bearish opportunity at the price of 1.0788. Accordingly, it will be a good sign to sell at this level. It should be noticed that the support has already been placed at the 1.0620 level.

Intraday technical levels:

Date:23/07/2014

Pair:USD/CAD

• R3: 1.0782
• R2: 1.0771
• R1: 1.0753
• PP: 1.0742
• S1: 1.0724
• S2: 1.0713
• S3: 1.0695