FX.co ★ USD/CAD: technical analysis for October 16, 2013

Overview:

• The resistance for USD/CAD is set at the level of 1.0450 / 1.0421, therefore, the bears are going to sell below 1.0450, because there is a new top at the price of 1.0421 (61.8% Fibonacci retracement levels). So it should also be noted that the resistance is set at the level of 1.0421, thus swing trade at the area of 1.0450 in order to sell with the target of 1.0400 is preferable; it might resume to 1.0333. Additionally, the trend will call for a bearish market at the level of 1.0375, there is a bearish channel. It might be informing that the stop loss should never exceed your maximum exposure amounts. Hence, set the stop loss above 1.0490 at the level of 1.0503, then the bulls are going to buy above 1.0331 (38.2% Fibonacci retracement levels) with the first target of 1.0370; it might resume to 1.0425. It should be noted that the volatility is198.40, then the market indicates the higher volatility. In the long term, if the market calls for bearish sentiment, then the price will form a double bottom at the level of 1.0333 (in H1 time frame). It should be noted that the key level will be set at the price of 1.0421, and a range will be between 1.0410 and 1.0355.

Intraday technical levels:

Date: 16/10/2013

Pair: USD/CAD

• R3: 1.0462
• R2: 1.0427
• R1: 1.0403
• PP: 1.0368
• S1: 1.0344
• S2: 1.0309
• S3: 1.0285