FX.co ★ Technical analysis of USD/CAD for May 14, 2014

Overview:

• The USD/CAD pair will continue the downtrend from the level of 1.0980 and this level is coinciding with the ratio of 38.2% Fibonacci retracement levels in H4 chart. Moreover, it should be noted that the resistance has really set at the 1.0980 level. Therefore, it will be a good sign to sell below the level of 38.2% Fibonacci retracement levels (1.0990) with the first target of 1.0870 and further to 1.0813 in order to form a double bottom. Also, the area of 1.0813 is going to act as strong resistance for that it is going to be a good place to take profit. However, in case a reversal takes place and the USD/CAD pair breaks through the resistance level of 1.0990, then the market will lead to further increase to 1.1100 in order to indicate the bullish market.