24.01.201416:04 Forex Analysis & Reviews: USD/CAD intraday technical levels and trading recommendations for January 24, 2014

Long-term review

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This week, the bulls managed to reach new price levels (around 1.1170) that haven't been reached since 2009. This bullish momentum is purely fundamental-induced due to the positive data from the United States.

This week, the U.S. dollar rose against most majors among expectations that Federal Reserve would cut the cash facilities at the next meeting after data showed signs of slowing economic recovery. However, the USD failed to keep its gains against the CAD as the USD/CAD pair was pushed again towards 1.1050.

The next prominent resistance level is located around 1.1230 corresponding to 50% Fibonacci Level of the bearish movement extending between March 2009 and July 2011.

The USD/CAD pair has a prominent support zone at 1.0700-1.0750 which represents the upper limit of consolidation range that got broken this month.

Any further testing of this zone will provide a valid BUY entry for the mid-term.

The pair was pushed strongly to the upside after testing of the uptrend line that came to meet the pair around 1.0650. This was followed by bullish breakout above 1.0720 (previous congestion zone).

Recently, atypical shooting star daily candlestick was expressed at retesting of 1.1090 indicating some bearish rejection off there.

The USD/CAD has a dependable SUPPORT zone located at 1.0960-1.0900. Any further retesting may indicate a good BUY entry. SL should be daily closure below 1.0900.

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