InstaForex - Analytics

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    USD/CAD intraday technical levels and trading recommendations for March 9, 2016 2016-03-09

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    A bullish breakout above the previous consolidation zone between 1.2400 and 1.2800 was performed on July 15 (shown on the weekly chart).

    A significant bearish rejection was observed around 1.3450. Hence, another consolidation range was established from 1.3450 down to 1.2800.

    On December 7, a bullish breakout above 1.3450 (the upper limit of the recent consolidation range) enhanced the bullish side of the market. Hence, a bullish visit to the resistance level of 1.4120 (Fibonacci Expansion 100%) was executed.

    Bullish persistence above 1.4150 enhanced the bullish side of the market towards 1.4650 (141.4% Fibonacci expansion) where an evident bearish rejection was expected (bearish engulfing weekly candlestick).

    The level of 1.4120 (Fibonacci Expansion 100%) remains a significant key level to be watched for further price reactions.

    On the other hand, the current price zone of 1.3350-1.3370 stands as a significant support zone to be watched for a valid buy entry.

    The price zone of 1.3350-1.3370 stands as a significant support zone to be watched for a valid buy entry.

    The zone of 1.3350-1.3370 corresponds to a daily uptrend line and the upper limit of the previous consolidation range (Prominent Breakout Level).

    Hence, signs of a bullish rejection around it should be considered a valid buy signal.

    Trading Recommendations:

    Conservative traders should be looking for a valid bullish entry around the current price zone of 1.3350-1.3370.

    S/L should be located below 1.3300. Initial T/P levels should be located at 1.3600 and 1.3750.


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