Considering the hourly chart of USD/CAD we can find the following:
The Yellow & Blue Channels are both bullish due to the major bullish swing on Monday, while the Violet one is bearish due to yesterday's bearish retracement after testing the upper limit of both Violet & Yellow channels.
In Intraday perspective, the USD/CAD pair may be forming a double buttom reversal pattern at 0.9805 which constituted an Intraday Support for the USD/CAD pair on Monday.
This possible double buttom pattern will be targetting at 0.9935. However, At this moment a bearish breakout below the Blue channel will allow the USD/CAD pair to reach 0.9833 (corresponding to the lower limit of the Yellow channel & yesterday's low) which is expected to bring another bullish swing to the market.
Based on the previous analysis:
It's recommended to have a BUY entry at 0.9833 which is expected to be a solid Intraday Support Level.
TP levels are to be located at 0.9860 and 0.9935 while SL should be 4H closure below 0.9815.
In case the USD/CAD pair closes below the price level of 0.9800, the expected double buttom scenario will be invalidated.
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The material has been provided by Instaforex Company - instaforex.com
