FX.co ★ Technical analysis on USD/CAD for October 21, 2014

In yesterday's session again the pair was rejected at the highest close level of 1.1297, fell back to 1.1250. At the end of the day it erases its losses and closed just below the opening price. For an intraday view, the prices are trading below the key hourly moving averages. In the h4 chart, we can observe lower lows and lower highs. This strategy will be breached once the pair closes above 1.1298 levels. But today in Asia's session the pair is facing resistance at the descending trend line. For an hourly view, the pair has support at 1.1268, below this, 1.1260 and 1.1251 will act as hourly trend decider levels. We recommend selling below 1.1251 for targets at 1.1235, 1.1222, 1.1211 and 1.1200. Buying above 1.1300 for targets at 1.1334 and 1.1360 (intraday).

In case, if the pair closes above 1.1298 on a daily basis immediately we can see 75-85 pips on the higher side. On the weekly basis, the pair has support at 1.1257, 1.1227 and 1.1211 levels. The weekly support is at 1.1195 (20Dsma). The weekly trading pattern is framed between 1.1184-1.1298 levels. We recommend fresh buying only above 1.1300 for targets at 1.1385 levels on a positional basis.