empty
 
 
24.10.2014 09:53 PM
USD/CAD intraday technical levels and trading recommendations for October 24, 2014
This image is no longer relevant
This image is no longer relevant

Overview:

Two months ago, the bearish swing (initiated in March 2014) was hindered at the price level of 1.0620. This price level corresponded to the lower limit of the channel as well as the backside of a steeper bearish one.

A bullish breakout off the movement channel took place in August. Since then, the pair has been trending-up within the depicted bullish channels.

As mentioned before, breaching the price zone of 1.1230-1.1260 and fixation above it triggered new bullish impulse. Strong bullish momentum has been expressed for a couple of weeks so far. This movement was maintained within a steeper bullish channel.

The bulls were pushing beyond the upper limit of the movement channel. The USD/CAD pair looked overbought on the daily chart. 

Few days ago, the USD/CAD pair tested the upper limit of the steeper channel. This corresponded to the price level of 1.1370. Immediate bearish rejection was expressed as anticipated after such a long bullish swing resulting in a bearish correction towards 1.1200.

Recommendations:

Conservative traders should be looking for short positions around the price zone of 1.1270-1.1290 with SL located just above 1.1320.

On the other hand, for traders who missed the initial entry, 4H fixation below 1.1230 - 1.1210 ( 50% Fibonacci level ) is another valid signal with a higher risk/reward ratio. Initial targets are located at 1.1180-1.1160.  

Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback