Movement back to a significant level

From May 2016, USDCAD is moving inside a growth channel. Last week, price approached upper limit of the uptrend, and this caused a bearish movement lasting until present day. Already at the current level you can see that the demand is ready to defend support at 1.3580. It is worth noting how important this level is and how long it took to break it.

USDCAD D1
USDCAD D1

USDCAD increases are not threatened

It seems that level 1.3580 should be defended by demand with all strength. The current pullback to it corresponds to the well known market price behavior, which is called return movement and bulls can use it as an advantage.However, if bears manage to break 1.3580 support, then USDCAD still has a long way to go.

USDCAD H4
USDCAD H4
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Author of worldtrader.pl blog and big supporter of technical analysis. Active medium-term trader. In his analysis uses classical charts, price action as well as harmonic patterns and Elliott Waves. In trading he always tries to take into account two points of market's view, in accordance with the principle that each transaction may be attractive both for the demand and supply traders.