The USD/CAD pair continues to move upwards from the level of 1.3226. Yesterday, the pair rose from the level of 1.3185 to a top around 1.3275. Today, the first resistance level is seen at 1.3275 followed by 1.3322, while daily support 1 is seen at 1.3185 (78.6% Fibonacci retracement). According to the previous events, the USD/CAD pair is still moving between the levels of 1.3226 and 1.3322; so we expect a range of 96 pips.
Furthermore, if the trend is able to break out through the first resistance level at 1.3275, we should see the pair climbing towards the 1.3322 level.
Therefore, buy above the level of 1.3226 with the first target at 1.3275 in order to test the daily resistance 1 and further to 1.3322. Also, it might be noted that the level of 1.3322 is a good place to take profit because it will form a double top. On the other hand, in case a reversal takes place and the USD/CAD pair breaks through the support level of 13185, a further decline to 1.3066 can occur which would indicate a bearish market.
The material has been provided by InstaForex Company - www.instaforex.com