USDCAD tests the resistance – Analysis - 05-02-2018

The USDCAD pair rallied upwards strongly to breach the bearish channel’s resistance and reaches the most important resistance to the short term trades at 1.2470, as the price keeps its stability below this level until now, accompanied by witnessing clear overbought signals through stochastic, to form negative pressure that we are waiting to force the price to decline again.

Therefore, the overall negative scenario will remain valid until now unless we witnessed clear breach and hold above 1.2470, noting that the waited targets begin at 1.2330 and extend to 1.2053.

Expected trading range for today is between 1.2330 support and 1.2470 resistance.

Expected trend for today: Bearish