USD/CAD: Trade ideas for August 12
The USDCAD continues to find strong resistance at the level of 1.0985, and now this pair is trying to find support at the 1.0920 level (23.6 Fibo level) and then performing a rebound that allows to get it back to the resistance level of 1.0985. The USDCAD could find strong support in the area of 1.0920, because there is located the 200 EMA.
Furthermore, if the USDCAD is able to make a breakout at the support level of 1.0920, it is expected to fall to the level of 1.0879, where the 38.2 Fibo level is located. Our bullish outlook could be invalidated if the pair manages to make a breakout in the support level of 1.0846 (50 Fibo level), where is located the 500 EMA (red line).
Trading recommendations: Put buy orders if the USDCAD does a breakout a the resistance level of 1.0985. We don't recommend to add long positions below that level currently, because there are no clear bullish patterns.