Technical Analysis for CAD

Technical Analysis for CAD

The pair failed yesterday to breach 1.0140 levels representing the first target of the bearish harmonic Bat Pattern in which the second target was achieved earlier. Despite failing to breach 1.0140 levels, the pair is stable above 50% correction of CD Leg of the pattern at 1.0075 levels and above Linear Regression Indicators. Therefore, a new attempt to the upside is possible in order to breach 1.0140 levels to end the bearish harmonic pattern’s affect then rebound to the upside, confirming the formation of an ascending channel shown on graph.

The trading range for today is between the key support at 1.0015 and the key resistance at 1.0215.

The general trend over short term basis is to the upside with steady daily closing above levels 0.9800 targeting 1.0485.

Support: 1.0100, 1.0075, 1.0030, 1.0015, 1.0005
Resistance: 1.0140, 1.0185, 1.0200, 1.0215, 1.0245

Recommendation Based on the charts and explanations above, our opinion is buying the pair above 1.0100 targeting 1.0140, 1.0185 then 1.0215 and stop-loss with four-hour closing below 1.0075 might be appropriate