FX.co ★ USD/CAD intraday technical levels and trading recommendations for January 7, 2015

Overview:

Three months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel.

During the past few weeks, the USD/CAD pair established a temporary consolidation zone between price levels of 1.1560 and 1.1670.

Bullish breakout above these zones allowed bulls to reach new highs around 1.1800 and 1.1830 where the upper limit of the bullish channel is roughly located.

The price zone of 1.1665-1.1580 remains the nearest SUPPORT zone for the current prices. LONG positions are suggested at retesting of this price zone.

Note the bearish rejection being expressed around 1.1840 where the upper limit of the depicted movement channel is located. An inverted hammer daily candlestick was expressed on Monday.

Trading recommendations:

As mentioned, risky traders should have looked for SHORT positions around price level of 1.1820 up to 1.1840. The stop loss should be set as DAILY CLOSURE above 1.1875.

LONG positions are suggested at retesting of price zone of 1.1665-1.1580 which is a newly-established SUPPORT zone.