Technical analysis of USD/CAD for December 11, 2014
The USD/CAD pair is going to call for an oblique market on December 11, 2014. The price will most likely be trapped between the levels of 1.1500 and 1.1443 in order to form a sort of 57 pips today. Though, risk to reward ratios is vital and should be considered, and then a risk (57 pips) reward ratio of 1:1.5 is suggested, it can bring a profit of 85 pips.
The support level takes position at the price of 1.1443. Consequently, bulls are going to buy higher than 1.1443 with the primary target at 1.1475, it may continue to 1.1501. It should also be considered that a triple top is going to set at the level of 1.1501.
As a result, a stop loss should never go beyond your highest exposure amounts. The resistant level is set at the price of 1.1500, so the trend will call for a bearish movement at the level of 1.1500, since there is a small bearish channel. Therefore, swing trade at 1.1500 so as to sell with the target at 1.0600.
Tools of the chart:
The market is in oblique. Also, the trend was so clear because the price increased higher to 1.1500, but the price of the GBP/USD pair has been bouncing back lower towards the level of 1.1443. The double bottom is set at the price of 1.1400. The level of 1.1410 is the major level to establish the bullish market.