For Traders

Analytical Reviews

Technical analysis

18.04.201416:22 Forex Analysis & Reviews: USD/CAD intraday technical levels and trading recommendations for April 18, 2014

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

The depicted chart shows that the USD/CAD bulls failed to show enough bullish momentum above 1.1200. The bears took advantage to push the pair towards price zone of 1.0910-1.0850 (50-61.8% Fibonacci levels).

Last week, the USD/CAD pair returned to test the previous support zone around 1.0900 (50% Fibonacci level) which previously provided a considerable support at retesting on February 19.

Daily closure below 1.0920 took place last Wednesday. However, it didn't take long time to get a bullish engulfing daily candlestick as a bullish reaction on the next day.

On the other hand, the price zone of 1.0990-1.1045 ( 38.2% Fibonacci of the most recent bearish swing ) is expected to provide a considerable resistance as well. This price zone corresponds to a recently established resistance zone as well.

Any further visiting will probably offer a valid sell entry with stop loss located just above 1.1080.

It's important to note that the 4H chart reveals bullish pressure being applied over this resistance zone around 1.1000 and there's little probability of bullish breakout.

The bullish Head and Shoulders pattern is being expressed with the multiple ascending bottoms being established. This may threatens our SELL entry level so bears should watch price action carefully and stick to the mentioned stop loss level.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.