Overview:
The USD/CAD pair is going to call for a sideways market on December 31, 2013 and the price will probably be trapped between the level of 1.0580 and the 1.0725 level in order to form a range of 145 pips this week. However, risk to reward ratios are important and should be calculated, then a risk (96 pips) reward ratio of 1:1.5 is recommended must make a profit of 145 pips. The support sets at the level of 1.0580, therefore, the bulls are going to buy above 1.0580 with a first target of 1.0650, it might resume to 1.0715. It should be also noted that a double top is going to set at the price of 1.0733, for that a stop loss should never exceed your maximum exposure amounts. Hence, set stop loss above 1.0750. On the other hand, the resistance is set at the level of 1.0725, so the trend will call for a bearish market at the level of 1.0725 since there are a minor bearish channel, thus, swing trade at 1.0725 in order to sell with a target of the 1.0600 level.
