Overview:
Today, the USD/CAD pair is going to call for a sideways market on October 8, 2014 and the price will probably be trapped between the level of 1.1260 and the 1.1100 level in order to form a range of 178 pips this week. The support sets at the level of 1.1100, therefore, the bulls are going to buy above 1.1100 with a first target of 1.1183, it might resume to 1.1265. It should be also noted that a double top is going to set at the price of 1.1270. If the trend reflected and start showing the signs of bearish market below the leve of 1.1100; then the stop loss should never exceed your maximum exposure amounts. Hence, set the stop loss below the level of 1.1100. On the other hand, the support is set at the level of 1.1100, so the trend will call for a bearish market below this level of 1.1100 because there are a minor bearish channel,
Note:
We expect a range of 178 pips this week. So, the risk to reward ratios are important and should be calculated, then a risk (119 pips) reward ratio of 1:1.5 is recommended must make a profit of 178 pips.
Intraday technical levels:
Date and Time:8/10/2014 13:00
Pair:USD/CAD
R3: 1.1264 R2: 1.1230 R1: 1.1198 PP: 1.1164 S1: 1.1132 S2: 1.1098 S3: 1.1066