29.10.201413:31 Forex Analysis & Reviews: Technical analysis of USD/CAD for October 29, 2014

Overview:

• The USD/CAD pair is still moving between 1.1165 and 1.1217. So, we expect a large range about 52 pips in coming hours but the weekly range will be around 195. The breakout seen at the ratio of 50% Fibonacci retracement level (1.1097) for that the key level is set at the level of 1.1165 because it represents strong support and it coincides with the 61.8% Fibonacci retracement level. As it is known, history will probably repeat itself at this level again. Thereupon, the ascendant movement will probably be higher than the 1.1165. Consequently, it will be a good idea to buy above 1.1165 with the first target of 1.1215. It will call for an uptrend in order to continue its bullish movement towards 1.1263. Also, it should be noted that the level of 1.1263 is acting as strong resistance for 28-31 October, 2014. On the other hand, the stop loss should never exceed your maximum exposure amounts, consequently the stop loss should be placed below the double bottom at the price of 1.1075.

Review:

• The first resistance of USD/CAD pair is projected at the level of 1.1217 today.
• The second resistance had already fixed at 1.1263.
• The area of 1.1097 / 1.1150 is a useful spot to buy in the long term this week.
• We expect a range of 50 - 60 pips on October 28, 2014. And 180 -200 pips would make a profit of 94 pips.
• The value of 50% Fibonacci retracement levels is: 1.1097.
• Volatility: 249.28. As a rule, the market is highly volatile if the last day had a huge volatility.