Show full pictureUSD/CAD currency pair initiated a downtrend since October 2011 establishing two trendlines which we mentioned in previous articles. Since the USD/CAD pair reached the short-term downtrend line, it has been trending down breaking the uptrend line when we took a SHORT position which hit all of its TP levels at 1.0025,1.0000,0.9950 and 0.9890. The pair is now having narrow consolidation range as it's approaching the major support level (previous daily buttom) 0.9890. 
Show full pictureTwo weeks ago, the pair moved sideways within a consolidation range with its lower limit at 0.9980 that provided support of the pair for some time. After having bearish breakout, USD/CAD became trapped within the consolidation range 0.9985 - 0.9924 reflecting the indecision of the market instead of leading a decline. These indecision & weakness in the bearish movement after breaking a significant support level may indicate change in direction short time after. Strong Bullish reaction was found towards price level 0.9924. Based on the previous analysis As long as the USD/CAD movement is still within the range 0.9985 - 0.9924 we can't make sure of the trend change. However, we have some bullish indications till now. SELLING the range's high & BUYING its low is considered viable untill we have a breakout to one side so we can take a trade on the same direction of the breakout. Price level 0.9950-0.9935 should be watched today as a significant intraday support that may lead to a bullish breakout of the range.
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Performed by Mohamed Samy, Analytical expert
InstaForex Companies Group © 2007-2012
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