FX.co ★ Technical analysis of USD/CAD for May 1, 2015

General overview for 01/05/2015 07:50 CET

As anticipated yesterday, the market is breaking up above the important identical resistance zone as the bullish divergence is now fully exposed. The next hurdle for the price is a narrow supply zone marked on the chart by grey rectangle between the levels of 1.2165 - 1.2194. Any breakout higher would directly expose the key level for the test.

Support/Resistance:

1.1944 - Local Low

1.1986 - 38% Fibo

1.2023 - 23% Fibo

1.2086 - Technical Resistance

1.2130 - Intraday Resistance

1.2165 - 1.2194 - Supply Zone

Trading recommendations:

Daytraders and swingtraders should consider opening buy orders from current price levels (some of the traders might have open buy orders from yesterday already). Rather tight SL should be used here (20-30 pips) and TP is open for now.