USD/CAD HIT THE KEY SUPPORT ZONE AND 200-EMA AGAIN
USD/CAD traded slightly higher after it hit once again the key support zone between 1.2580 and 1.2600 and the price step again on 200-EMA. That said, the recovery stayed limited near 1.2711. Lately, the pair has been trading in a consolidative manner, and thus, the experts will refrain from confidently calling its next trending direction.
In order to start examining the bearish case, traders would like to see a dip below that key support zone. 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 low of July 30th, at 1.2420, or the low from the beginning of July, at levels around 1.2300.
On the upside, the traders would assess a bullish-case scenario when we see a recovery above the zone at 1.2710. This could set the stage for upside extensions towards the high of July 19th, at 1.2810, the break of which could extend the rally towards the peak of August 20th, at 1.2947.
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In order to start examining the bearish case, traders would like to see a dip below that key support zone. 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 low of July 30th, at 1.2420, or the low from the beginning of July, at levels around 1.2300.
On the upside, the traders would assess a bullish-case scenario when we see a recovery above the zone at 1.2710. This could set the stage for upside extensions towards the high of July 19th, at 1.2810, the break of which could extend the rally towards the peak of August 20th, at 1.2947.
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.