USD/CAD HIT ONCE AGAIN KEY SUPPORT ZONE
USD/CAD traded slightly higher yesterday after it hit once again the key support zone of 1.2580, clearly visible on a 4-hour chart. That said, the recovery stayed limited near 1.2630. Lately, the pair has been trading in a consolidative manner, and thus, investors will refrain from confidently calling its next trending direction.
In order to start examining the bearish case, the experts would like to see a dip below that key support. This will confirm a forthcoming lower low and may initially target the 1.2533 zones. Another break, below 1.2490, could invite more bears into the game, who may drive the action towards the levels of 1.2426 or slightly on South to the key support and psychological zone at 1.2300.
On the upside, the experts would assess a bullish-case scenario when they see a recovery above the high of August 27th, at around 1.2700. This could set the stage for upside extensions towards the high at 1.2787, the break of which could extend the rally towards the peak of August 20th, at 1.2950.
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In order to start examining the bearish case, the experts would like to see a dip below that key support. This will confirm a forthcoming lower low and may initially target the 1.2533 zones. Another break, below 1.2490, could invite more bears into the game, who may drive the action towards the levels of 1.2426 or slightly on South to the key support and psychological zone at 1.2300.
On the upside, the experts would assess a bullish-case scenario when they see a recovery above the high of August 27th, at around 1.2700. This could set the stage for upside extensions towards the high at 1.2787, the break of which could extend the rally towards the peak of August 20th, at 1.2950.
Risk Disclosure: Trading Foreign Exchange (Forex) and Contracts of Difference (CFD's) carry a high-risk level. By registering and signing up, any client affirms their understanding of their own personal accountability for all transactions performed within their account and recognizes the risks associated with trading on such markets and such sites. Furthermore, one understands that the company carries zero influence over transactions, needs, and trading signals. Therefore, it cannot be held liable nor guarantee any profits or losses.