Technical analysis of USD/CAD for April 29, 2015

Overview:

• The USD/CAD pair was not able to break the resistance at the level of 1.2099 today. Also, it should be noted that this strong resistance has coincided with the double top in the H1 chart. Moreover, the daily pivot point has already been set at 1.2030 and support is found at the level of 1.1970. Then, according to previous events, the pair is going to move between 1.2099 and 1.1970. Consequently, we expect a range about 129 pips in the future. Additionally, note that the trend is still above the ratio of 61.8% Fibonacci retracement levels which representing the weekly pivot point. At that point, the level of 1.1988/1.1970 is really acting as support.
• Futhermore, the RSI has seen a saturation around the level of 30 of RSI. So, it is a good sign to buy above the weekly pivot point (1.1970) with the first target of 1.2063, and continue towards 1.2100 (first resistance). Notwithstanding, if the trend breaches the level of 1.1970 and closure below it in the daily chart, it will also a good sign to set your stop loss at the price of 1.1942.

The material has been provided by InstaForex Company – www.instaforex.com