USDCAD moved downwards last week and now it is at a very important structure where it may break through or reverse. The monthly PP level at 1.31252 is very important and could now serve as support and reverse the price to the upside or if broken may send the price down to the M_R1 levels. The movement is not very clear so we will have to wait to see where the price will open and how will act on this area, then depending on the price action here we will take position on the market.
Comment:
The pair opened just above the M_PP where we have a structure of interest but then the price moved up on Monday. Today the price was in a bearish mood and now is nearing again this area. We may consider now, depending on the price action on this level, to go long in the market, with a SL below the M_PP and TP at M_R1, but first we will have to wait to see the price reaction on this area.
Comment:
The pair has tested the M_PP and bounced from this structure this week and now as it approaches again this area we expect that it will find again support. Our position on the market now is active as buy position so now we will have to wait and see if this area will serve as good support. Our analysis for the next week too will be based around the M_PP structure as we believe that this area is very important area in the eyes of traders.