Will USD/CAD establish double bottom around 1.0360 targeting 1.0450 for July 18, 2013
The USD/CAD pair rose steeply approaching the key resistance level of the ascending channel around 1.0530 as depicted on 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.
This false breakout was quickly followed by intensive bearish pressure that led to breakdown of 1.0450 and 1.0380 with a recorded low 1.0325.
As depicted on the chart, price zone 1.0325-1.0360 constituted a strong support area where a possible double-bottom may be established to lead towards 1.0450 initially.
A valid SELL entry may be taken at retesting of 1.0450 with SL located above 1.0510. However, consolidation above 1.0450 may threaten our entry.
The material has been provided by InstaForex Company – www.instaforex.com