FX.co ★ Technical analysis of USD/CAD for April 24, 2015

Overview:

• The double bottom of USD/CAD pair is likely to be set at 1.2087 in the hourly chart. Now, the pair is approaching to test it in order to start rising. So, the market is continuing to show signs of strength following the break at the level of 1.2087. Therefore, the USD/CAD pair resistance has broken and was turned to support since January 21, 2015 (look at the daily chart).

• Moreover, the pair has already formed strong support at the level of 1.2087. Hence, the market indicates a bullish opportunity at the level of 1.2090 with the first target at 1.2170 and continues towards 1.2224. However, if the trend can break this level and close below 1.2080, then it will be a downside momentum rather convincing and the structure of the fall does not look corrective. The market will indicate the bearish opportunity at the level of 1.2080. As a result, it will be a good sign to sell at this level, but it should be borne in mind the stop loss should never exceed your maximum exposure amounts for that it should be placed at 1.2065.