The USD/CAD pair has still been trapped between 1.0455 (78% of Fibonacci retracement levels) and 1.0550 (100% of Fibonacci retracement levels).
The support sets at the level of 1.0435, therefore the bulls are going to buy above 1.0435 with the first target of 1.0415, it might resume to 1.0525.
The double top on the price 1.0554 and it should be noted that the resistance sets at the level of 1.0570, thus swing trade at 1.0570 in order to sell with the target of 1.0460.
The trend will call for a bearish market on the level of 1.0570, there are a bearish channel.
The stop loss should never exceed your maximum exposure amounts. Hence, set a stop loss above 1.0600.
The price at the level 1.0570 will form a strong resistance, therefore if the bulls break it and the price will be closed above it, then the trend is going to call for a bullish market towards 1.0660.
However, it should be noted that the risk to reward ratios are important and should be calculated. A risk reward ratio of 1:1.5 is recommended. Risk: 63 pips must make a profit of 94.5 pips.
The material has been provided by InstaForex Company – www.instaforex.com
The material has been provided by InstaForex Company – www.instaforex.com
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