Trading recommendation on USD/CAD for October 29, 2014 Market Analysis Review

USD/CAD

The pair was beaten heavily in the previous session, closed below 20Dsma. The soft US data pulled the pair to a 2-weeks low. The nearest support exists at 1.1155 levels. Below this we can expect 50 or 80 pips down towards 1.1080 or 1.1070 levels. In the near-term perspective the pair is in a bear grip. The following reasons will explain my view. The pair is trading below 1.1185 which is not a good sign in the near term. The monthly candle is turning red and the pair is trading below 1.1198 levels. These two factors give an indication of weakness. We recommend fresh buying above 1.1200. Today traders eye the FOMC announcement and BOC Governor Poloz speech. Today's closing will provide clear direction for the near and short term. In the h4 chart, we can clearly see lower low swings and lower high swings forming. We recommend selling below 1.1150 levels. In the h4 chart the momentum indicators are in oversold zone. We expect pull back from these levels. Risky traders can buy at the market price of 1.1167 with sl 1.1155 and target at 1.1195. We recommend selling below 1.1150 for a downward target at 1.1140, 1.1100 and 1.1072 levels.

Trade:

Buying at a market price with sl 1.1155

Selling below 1.1150

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