USDCAD achieves strong gains – Analysis - 19-01-2017

The USDCAD pair rallied upwards strongly yesterday after approaching from our main waited target at 1.2985, to breach 1.3190 and head towards the most important resistance for the short term trading at 1.3310, which represents 38.2% Fibonacci correction level for the decline measured from 1.4688 to 1.2459, accompanied by stochastic reach to the overbought areas.

As long as the price is below the mentioned correctional level, we believe that the negative pressure will remain dominant on the short term basis, to head towards targeting 1.2985 areas in the upcoming period, being aware that breaching 1.3310 will lead the price to extend its gains and head towards 1.3574 direct.

Expected trading range for today is between 1.3150 support and 1.3310 resistance.

Expected trend for today: Bearish