FX.co ★ USD/CAD: trading recommendations for May 28, 2013

Forecast: According to the previous events, the price has still been trapped between 1.0300 and 1.0350. The support is set at the level of 1.0250, therefore the bulls are going to buy above 0.9900 with the first target of 1.0350, it might resume to 1.0390. Double top on the price 1.0393 and it should be noted that the resistance sets at the level of 1.0360, thus swing trade at 1.0320 in order to sell with a target of 1.0250 Trend will call for a bulish market on the level of 1.0250, there are a bullish channel. Stop Loss should never exceed your maximum exposure amounts. Hence set a stop loss above 1.0200. However, risk to reward ratios are important and should be calculated. A risk reward ratio of 1:1.5 is recommended. Risk: 60 pips must make a profit of 90 pips.