USD/CAD intraday technical levels and trading recommendations for September 5, 2014

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The bullish breakout off the depicted channel allow bulls to retest the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was previously formed.


One month ago, the USD/CAD pair failed to maintain daily closure above price level of 1.0950, then a double-top reversal pattern was expressed at retesting last week.


As we mentioned before, bearish rejection was anticipated after such a long bullish rally that originated off 1.0650 and 1.0710.


A valid SELL position was suggested at retesting which took place last week. The initial bearish target is located around 1.0825, then 1.0770 (considerable Intraday support).


The price zone of 1.0880-1.0900 offered a valid low-risk SELL entry as we mentioned this week.


As long as the recent top at 1.0990 remains unbroken, our sell position remains valid.


Daily closure below the price zone of 1.0870-1.0850 confirms a long-term double-top pattern (on the daily chart) with its projection target located at 1.0770.


Note that the USD/CAD fell slightly after the release of the PMI data (below expectations), a bearish spike dipped down to 1.0870 before bullish recovery was witnessed.


On the other hand, daily fixation above 1.0950 (50% Fibonacci level) enables the bulls to shoot towards 1.1020 and 1.1050 initially (very low probability in the meantime).


The material has been provided by InstaForex Company - www.instaforex.com

Daily analysis of Silver for September 05, 2014

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Overview


As shown in the today's H4 chart, the metal failed again to break the support level of 19.00 and is still trading above the support level and below the resistance level of 19.20. Currently, silver is bouncing from the support level and starting the bullish move. So, we still suggest waiting for closing above the resistance level of 19.20 in case of bouncing from the support level to give us a new opportunity for more buy signals with the first target few pips below the resistance level of 19.50. Then, after breaking this resistance level, silver would open the way towards the resistance level of 19.75, which means more bullish signals. However, as long as the metal trades below the resistance level of 19.20, it cancels the bullish scenario.


Resistance and support levels: R3 (19.75), R2 (19.50), R1 (19.20), S1 (18.00), S2 (19.75), S3 (18.50)


The material has been provided by InstaForex Company - www.instaforex.com