FX.co ★ USD/CAD: technical analysis for October 30, 2013

Overview:

• The resistance for USD/CAD is set at the level of 1.0490, thus, the bears are going to sell below 1.0493, because there is a new top at the price of 1.0490 (between 61.8% Fibonacci retracement levels and 78.6%). So it should also be noted that the resistance is set at the level of 1.0490; therefore swing trade at the area of 1.0490 in order to sell with the target of 1.04355 is preferable; it might resume to 1.0380. Additionally, the trend will call for a bearish market at the level of 1.0370 in case of breaking this level because there is a bearish channel. It might be informing that the stop loss should never exceed your maximum exposure amounts. Hence, set stop loss above 1.0525 at the level of 1.0530. However, the bulls are going to buy above 1.0375 in a short term (50% Fibonacci retracement levels) with the first target of 1.0421, it might resume to 1.0480. It should be noted that the volatility is 214.60, then the market indicates the higher volatility. In the short term, if the market calls for bearish sentiment, then the price will form a double bottom at the level of 1.0331 (in H4 time frame).