USDCAD attempts to recover – Analysis - 06-02-2019

The USDCAD pair breached 1.3128 level yesterday and settled above it, which opens the way to start recovery attempts on the intraday basis, and we believe that the way is open to test the previously broken neckline of the head and shoulders’ pattern at 1.3200.

Now, we prefer staying aside temporarily until we get clearer signal for the next trend, which we will get through breaching 1.3200 resistance or breaking 1.3128, noting that breaching the resistance will stop the negative effect of the mentioned pattern and push the price to achieve more gains that reach 1.3382 as a next main station, while breaking the support will push the price to resume the main bearish trend that its next target located at 1.2922.

The expected trading range for today is between 1.3060 support and 1.3230 resistance.

The expected trend for today: Depends on the above mentioned levels