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    USD/CAD intraday technical levels and trading recommendations for April 14, 2015

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    Overview:

    SSince bulls have pushed the price further above the upper limit of both depicted bullish channels and the 79.6% Fibonacci level, the market looks quite overbought.

    Successive lower highs were established within the wedge pattern. However, the market experienced a bullish breakout above 1.2550-1.2600 shortly after.

    The market failed to hold above 1.2650 - 1.2680 (previous highs) resulting in the formation of a double-top pattern that calls for confirmation (a daily closure below 1.2350).

    On the other hand, the support level around 1.2350 (lower limit of the wedge pattern) and 1.2300 (79.6% Fibonacci level) have been providing support for several weeks on the daily and weekly charts.

    On a daily basis, as long as the USD/CAD pair keeps trading above 1.2550 (intraday support level), an initial bullish swing towards 1.2800 should be expected (upper limit of the current consolidation range).

    In the long term, a projected target for the USD/CAD wedge pattern would be located near the level of 1.3050 (the origin of the last bearish swing initiated on March 2009, 100% Fibonacci level).

    On the other hand, daily closure below 1.2550 brings the USD/CAD pair to 1.2300-1.2350 again (where the lower limit of the wedge pattern as well as 79.6% Fibonacci level is located).

    Trading recommendations:

    As anticipated, risky traders should wait for bullish breakout above 1.2550 for a valid long entry.

    T/P to be placed at the price levels of 1.2740, 1.2800, and finally 1.3040.

    Mohamed Samy neemt deel aan de "Analyst of the Year" onderscheiding georganiseerd door MT5.com portal. Als u zijn artikel goed vindt, stemt u dan op hem.

    Uitgevoerd door, Analytische expert
    InstaForex Group © 2007-2015

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