USD/CAD Weekly Signal- August 25, 2014

By DailyForex | Updated August 25, 2014 AAA

By: John Ursus

Timeframe: W1

Recommendation: Short Position

Entry Zone: 1.0900 โ€“ 1.0975

Take Profit Zone: 1.0710 โ€“ 1.0760

Stop Loss Zone: 1.1050 โ€“ 1.1100

The USDCAD has rallied over the past 12 trading months. The rally took this currency pair from an intra-day low of 0.9632 to an intra-day high of 1.1278 from where it started to correct. This currency pair is now trading at resistance from its 38.2 Fibonacci Retracement and there could be an increase in volatility at this resistance level before the USDCAD is expected to decline to its 50.0 Fibonacci Retracement level.

Forex traders should split their order into several positions at resistance and slightly above in order to reduce risk for this trade. Any further rallies from current levels should be taken as a good opportunity to enter new short positions. Upside potential is currently rather limited while downside potential remains attractive.

USDCAD 82514

You May Also Like

Related Forex Analysis
  1. Forex News

    USD/CAD Technical Analysis: Selloff Stalls at Trend Support

  2. Investing

    USD/CAD Fails to Hold Gains

  3. Investing

    USD/CAD: 2015 Forex Forecast

  4. Forex News

    Trade Inside Bars with OCO Orders

  5. Forex News

    USD/CAD to Face Fresh December Highs on Dismal Canada CPI

Trading Center