Technical Analysis USDCAD : 2014-07-10

Good afternoon, dear traders. Today we consider the USD/CAD trading instrument on the D1 chart. RSI-Bars leading oscillator signal confirms the downtrend continuation. Since the oscillators offer the most correct tips precisely during the sideways movement, a conclusion on the market bearish trend can be drawn. The graphical analysis proves the direction: daily and weekly trend channels are directed into the red zone, the Moving Average line lies above the last 2 candlesticks.


However, the local price behavior points the temporary consolidation out and the "balance" candlestick pattern (marked in yellow) confirms this fact. A large-scale motion is expected. We suggest placing a pending sell order below the fractal support at 1.06187. This level is confirmed by ParabolicSAR historical values. Risk limitation is to be placed above the resistance at 1.06946, which is intensified by the moving average signal. Trailing Stop is to be moved according to the trend direction every day (above the next fractal peak): trend following strategy. Therefore, we are changing the probable profit/loss ratio in our favor. Conservative traders can take half of the profit in the vicinity of the previous month's resistance at 1.05183, which now acts as the support.

Sell stopbelow 1.06187
Stop lossabove 1.06946
Take profitabove 1.05183


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