Forex Technical Analysis, USD/CAD Daily Forecast June 1, 2016
Technical Analysis – The USD/CAD pair initially dipped lower during the day on Tuesday but found the 1.30 level supportive enough to turn things back around and challenge the top of the shooting star for the Monday session. Now that we are breaking above there, if we can continue the move higher, I believe that this market will continue to grind towards the 1.33 level. Dips at this point in time should be thought of as buying opportunities, as there is more than enough support at the 1.30 level, and of course extending all the way down to the 1.28 level.
In Other View Point – USD/CAD – Inverse head and shoulder
Resistance – 1.3107, 1.3185, 1.3312 Support – 1.2987, 1.2914, 1.2771 Pair’s recovery from 1.3042 (daily 5-MA) followed by a move above 1.30 handle amid bullish daily RSI would open doors for a test of inverse head and shoulder neckline located at 1.3185 levels, On the other hand, a clear break below 1.2987 (23.6% of 1.4690-1.2461) is needed to signal bullish invalidation. Moreover, rejection at neckline resistance followed by a break below 1.2987 would signal renewed sell-off to 1.2770-1.27 levels.