USD/CAD reverses again off support at 1.0275 – Will breakthrough of 1.0360 take place? August 16, 2013
The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted in the chart. Since then, the pair has established a consolidation range between 1.0450-1.0560 that expressed a false bullish breakout above 1.0555 which was followed by intensive bearish pressure that led to the breakdown of 1.0450 and 1.0380 with a record low of 1.0254.
As depicted in the chart, the price zone of 1.0325-1.0360 constituted strong support area. However, strong bearish pressure at 1.0440 was applied on the pair to breakdown the previous daily low of 1.0325 then a prominent bottom was established around 1.0260. Since then, the pair has been bullish until significant bearish pressure was applied around 1.0430-1.0440.
A SELL entry was suggested around Resistance 1.0460 which has not been reached recently. Instead, bearish momentum was initiated earlier around 1.0440. This opens the way towards 1.0275 (Prominent Support) where a buy entry was suggested upon watching bullish price action there.
If the bulls manage to breakthrough 1.0360 today, GBP/USD will probably visit 1.0450 in the short prospect.
Failure to fixate above 1.0360 puts further bearish pressure to get back towards 1.0275 again and if this happens next, there will be a high probability this time to extend the bearish movement towards 1.0190.
Another significant Demand Level is located around 1.0170 (the lower limit of the ascending channel depicted in the chart).
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