Technical analysis of USD/CAD for August 01, 2016

Technical analysis of USD/CAD for August 01, 2016

Overview:

The USD/CAD pair continued its bearish momentum bottomed at 1.3030 since last week. The bias remains bearish in the nearest term testing 1.2971 (61.8% Fibonacci Expansion). Immediate support is seen around 1.2971. A clear break below that area could lead the price to an uptrend in the nearest term testing 1.2876 and 1.2797 (100% Fibonacci Expansion), but any upside pullback now is normal. On the whole, I remain bearish. It is recommended to sell below the price of 1.2971 with the first target within the range between 1.2971 and 1.2797. However, it also should be noticed the resistance will stand at 1.3135, so you have to keep an eye on the spot of 1.3135 because it is going to form a strong area in the coming days. Therefore, we expect the pair to consolidate at the current levels and then start forming a reversal structure for a new ascending wave from the price of 1.3135. Consequently, you have to note that the price of 1.3247 will be a symbol for strong resistance today.

Technical resistance levels: 1.3132 | 1.3247 | 1.3350
Technical support levels: 1.2971 | 1.2876 | 1.2797

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