16.10.201406:44 Forex Analysis & Reviews: Trading recommendation on USD/CAD of October 16, 2014

Long-term review

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The weak US data puts pressure on this pair. In the daily chart, the pair made a minor top at 1.1298 rounded to 1.1300. Currently in Asia's session, the pair is trading below the monthly high at 1.1278 and weekly high at 1.1270. The pair will regain the strength only above 1.1278 levels, 20 pips far from the market price. In case, if this week the pair closes above 1.1278 to 1.1300, the bulls will retain their strength in the new week as well. Today traders eye US unemployment claims and Canada's manufacturing sales. In case, if this week the pair closes above 1.1279, we can see 1.1530 (the 138 fib level) in the next few weeks. For the near-term, we can see 1.1458 in the next few sessions. On the down side, it has support at 1.1150 levels.

For an intraday view, the prices are closed above the hourly key moving averages. The pair has been supported by 21hrsma for 13hrs. The trading pattern is framed between 1.1223 and 1.1275. We recommend selling below 1.1215, for targets at 1.1185 levels. We recommend fresh buying above 1.1276 for targets at 1.1300 and 1.1322.

Trade-

Buying above 1.1276

Selling below 1.1227

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