Technical analysis of USD/CAD for January 11, 2019

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Overview:

The USD/CAD pair has dropped sharply from the level of 1.3419 towards 1.3181. Now, the price is set at 1.3297 and acts as a daily pivot point. It should be noted that volatility is very high, so the USD/CAD pair will continue to move between 1.3297 and 1.3181 in the coming hours. Furthermore, the price has been set below the strong resistance at the levels of 1.3297 and 1.3419, which coincides with the 23.6% and 50% Fibonacci retracement level, respectively. Additionally, the price is in a bearish channel now. Amid the previous events, the pair is still in a downtrend. From this point, the USD/CAD pair continues to move in the bearish trend from the new resistance of 1.3297. Thereupon, the price spot of 1.3297 remains to be a significant resistance zone. Therefore, a possibility that the USD/CAD pair will have downside momentum is rather convincing and the structure of a fall does not look corrective. In order to indicate a bearish opportunity below 1.3297, sell below 1.3297 with the first targets at 1.3181 and 1.3066. However, a stop loss order should be located above the level of 1.3419.

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