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.

This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.