FX.co ★ USD/CAD intraday technical levels and trading recommendations for August 1, 2014

Since the USD/CAD pair failed to show enough bullish momentum above 1.1200 during the last visit on March 20, the pair has been downtrending within the depicted bearish channel, which managed to push towards the price zone between 1.0910-1.0850 (50-61.8% Fibonacci levels on the daily chart) where a prominent congestion zone was established.

Bearish projection targets were visited at 1.0725 and 1.0685 respectively (the lower limit of the ongoing bearish channel).

As expected, bullish price action was expressed at retesting 1.0630 which is the origin of the previous bullish impulse initiated in December 2013.

A valid BUY entry was suggested. Expected targets got visited around 1.0750 and 1.0820.

The USD/CAD pair had a strong resistance level located around 1.0830 (61.8% Fibonacci Level) which got broken to the upside by Tuesday's daily candlestick. Now, this price level should act as intraday support.

The price zone around 1.0940 (50% Fibonacci Level ) remains the nearest resistance level that comes to meet the pair. 

Bearish rejection may be anticipated at retesting especially after such a long bullish rally off 1.0710.

On the other hand, the price level of 1.0775 remains the nearest support to meet the pair where a valid BUY entry may be taken with Stop Loss below 1.0715.