Technical Analysis USDCAD : 2014-05-23


Hello to all traders out there. Today we are going to analyze the US Dollar against the Canadian Dollar trading pattern. The currency pair draw resistance line at 1.0939 after a rebound from 1.0814. Downward breach of support at 1.0856 at previous trading provided a sell signal but the currency pair immediately recovered. The latter can be considered as a “Bear Trap”, therefore prices could rise further. In our opinion current trading pattern is a range between 1.1276 and 1.0856. According to the theory, the best strategy is to buy at bottom and sell at top.


Nevertheless, should the USDCAD attempts to fall below the support at 1.0814, we would follow on the short side with conservative risk/reward ratio. Concerning oscillators, MACD is below zero suggesting downside reversal formation, OsMA is increasing and that supports our range trading strategy, while Stochastic is neutral.
Note

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