Technical analysis of USD/CAD for October 23, 2014

Trading recommendations:

• According to the previous events, the USD/CAD pair is still moving between the levels of 1.1205 and 1.1270. The resistance will set at the level of 1.1270 which sets around the ratio of 61.8% of Fibonacci retracement levels in H1 chart. So, the key level is placed at 1.1270. As we know, history will probably repeat itself at this level again. Therefore, sell below 1.1270 with the first target at 1.1240, then it will go towards 1.1200 in order to test this strong support. If the trend does not fail to close above the support at 1.1200; then the trend will continue downward towards the new bottom at the point of 1.1165. Please check out the market volatility before investing, because the sight price may have already been reached and scenarios might have become invalidated.

Notes:

• Supports are placed at the levels of 1.1200 and 1.1165.
• Breakout level (resistance) sets at the level of 1.1270.
• In the short term, we expect a bearish market and a range of 65 pips today.

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