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The USD/CAD Linear Regression Hourly Chart reveals:
Yesterday we suggested a bullish entry for the USD/CAD at closure above 0.9910 which hit its first TP level at 0.9960 (the upper limit of the Yellow channel) then started to decline.
The USD/CAD could break the lower limit of the Bullish Violet channel reaching the next support level located at 1.5910 which corresponds to the lower limit of the wider Bullish Blue channel and the neck-line of the double buttom pattern depicted on the chart.
The pair has an Intraday support level at 0.9880 corresponding to the intermediate line of the Yellow channel and its breakdown is a bearish signal especially after breakdown of the lower limit of the violet channel which reflects some bearish domination and bullish weakness.
Breakdown of 0.9880 will allow the pair to reach the lower limit of the Yellow channel at 0.9825.
The most expected scenario is that USD/CAD shows bullish reaction towards 0.9910 giving a BUY signal and TP levels are to be located at 0.9960, 1.0005 then 1.0040 with SL located just below 0.9870. However, all possible scenarios should be taken into consideration due to the prolonged sideway movement of the USD/CAD on the Longer time frames since Last January.
The material has been provided by Instaforex Company - instaforex.com
