18.09.201412:12 Forex Analysis & Reviews: Technical analysis of USD/CAD for September 18, 2014

Overview:

• As expected, the USD/CAD pair rebounded at the level of 1.0886 and it showed signs of strength following the level of 1.0886. In H1 chart, the pair has already formed a strong support at the level of 1.0886 which coincides with the ratio of 23.6% Fibonacci retracement levels. Additionally, the resistance has broken and turned to support at the same key level (1.0886) and the price set above the support since 8th of September 2014. Equally important, look forward to that the USD/CAD pair will be trapped between 1.0926 and 1.1010. For that reason, the USD/CAD pair started showing the signs of bullish market, so the market indicates the bullish opportunity at the level of 1.0886 with the first target of 1.1000, and continues towards the level of 1.1040 again (1.1038 is representing the ratio of 78.6% Fibonacci retracement levels). Otherwise, the stop loss should always be in account, hence it will wise to set your stop loss at the 1.0810 price. Also, it should be noted that the double bottom had already be placed at the point of 1.0820.