FX.co ★ Technical analysis of USD/CAD for April 1, 2015

Overview:

• As expected, resistance got broken and turned to support at the same key level of 1.2649, which represents the 61.8% Fibonacci retracement levels in the H4 chart. So, support of the USD/CAD pair has been already set at the level of 1.1150. Equally important, the price set above the support line since yesterday. Furthermore, the price has still been moving between 1.2650 and 1.2770. Therefore, the USD/CAD pair started showing signs of bullish market, hence the market indicates the bullish opportunity at the level of 1.2650 with the first target at 1.2731, and continues towards the level of 1.2777 again. Also, it should be noted that the double top is likely to be set at 1.2777. On the other hand, the stop loss should always be taken into account. Thus, to set your stop loss at the 1.2614 price is going to be wise decision. Moreover, the level of 1.2777 represents strong resistance because the same level is coinciding with the 88.2% Fibonacci retracement levels. Consequently, the pair is going to form strong resistance at the spot of 1.2777/1.2770.

Observations:

• The weekly pivot point will set at the price of 1.2649.
• We expect a range of 129 pips. So, the risk of 86 pips must make a profit of 129 pips.
• Volatility: 385.92.