The pair succeeded is achieving the suggested scenario for last week by trading within the bullish channel shown in the image above. The daily and weekly closing has been achieved above 76.4% Fibonacci correction, previously breached at 13250. This points out more bullish movements for this week, although we may witness some fluctuation and minor bearish correction that may touch support for the bullish channel at 1.3190 before achieving the upside targets that start at 1.3400 , followed by 1.3600.
The trading range for today is among the key support at 1.3070 and the key resistance at 1.3600.The short term trend is to the downside as far as 1.3770 remains intact with targets at 1.1700.
The pair approaches 1.6000 levels as it continues to fluctuate near resistance for the bullish channel, where it is finding difficulty in surpassing this resistance due to the negative effect of momentum indicators appearing on the daily image above. Some minor bearish movement is expected to retest the previously breached 61.8% Fibonacci correction at 1.5870, before heading towards resuming the expected bullish trend for this week; targeting 1.6260 then 1.6360. We point out that the daily closing below 1.5870 will weaken chances of an expected upside direction that may push for to the downside to reach 1.5700 initially.
The trading range for today is among the key support at 1.5700 and the key resistance at 1.6360. The short term trend is to the downside as far as 1.6070 remains intact with targets at 1.3800.
The pair continued its bearish direction due to support from the bearish technical pattern forming at 85.70; whereas current trading has stabilized within the bearish channel represented in the current bullish short term trend. Momentum indicators are showing oversold signs that may push to retest the broken neckline, but in overallwe can expect a bearish direction this week that targets 84.75 then 82.50. Keep in mind that these expectations require a base to be built below 86.35.
The trading range for today is among the key support at 82.50 and the key resistance at 87.00.The short term trend is to the downside as far as 91.55 remains intact with targets at82.60.
The pair found a hard time breaching 76.4% Fibonacci correction as trading is stuck within the sideway trading range below 61.8% Fibonacci above 76.4%. The bearish slant through the minor bearish channel that trading is wedged in it and due to support from negative crossover signs appearing on Stochastic, we can expect a bearish trend this week that will initially start with the breach of 1.0340 and head towards 1.0130 then towards 0.9915. Chances of continuing the expected bearish direction that depends on the stability below 1.0610.
The trading range for today is among the key support at 0.9915 and the key resistance at 1.0570.The short term trend is to the upside as far as 1.0200 remains intact with targets at 1.1730.
USDCADThe pair has currently retested the previously breached neckline at 1.0275 after bullishly rebounding from 1.0135 that has formed the neckline for the largest bearish technical pattern, accompanied by current trading near momentum indicators from overbought areas; whereas the MA 50 is negatively pressuring the pair to form a roof for the short term trading. These factors encourage us to expect a bearish trend this week; targeting 1.0135 in an attempt to it and pave the way towards the short term direction at 0.9925. Keep in mind the importance of stability below 1.0385 to maintain chances of achieving these expectations.
The trading range for today is among the key support at 0.9925 and the key resistance at 1.0470.The short term trend is to the upside as far as 0.9925 remains intact with targets at 1.1485.
By: Yasir Mubarak
Senior Technical Analyst