Overview:
Few months ago, the price levels around 1.0620 (the lower limit of the depicted chart) initiated the current strong uptrend within the depicted daily channel.
During the past few weeks, the USD/CAD pair established a temporary consolidation zone between price levels of 1.1560 and 1.1670.
Bullish breakout above these zones allowed bulls to reach price levels of 1.1800, 1.1850 and recently 1.1900 where new highs have been scored.
As a conservative trader, you should know that price zone of 1.1800-1.1750 remains the nearest SUPPORT zone for the current prices. LONG positions are suggested at retesting this price zone.
You should also note the ascending channel pattern being expressed around price zone of 1.1900-1.1950 where the upper limit of the depicted movement channel is located.
This pattern may indicate bearish reversal if confirmed with bearish breakdown of the lower limit of it around price level of 1.1850-1.1870 (the most recent SUPPORT zone).
Trading recommendations:
LONG positions are suggested at retesting price zone of 1.1800-1.1750 which is a newly established SUPPORT zone. SL should be placed slightly below price level of 1.1730.
The material has been provided by InstaForex Company - www.instaforex.com
