Overview:
- The USD/CAD pair is going to call for a sideways market on October 17, 2014 and the price will probably move between the level of 1.1163 and the 1.1265 level in order to form a range of 114 pips in coming hours. However, risk to reward ratios is important and should be calculated, then a risk (76 pips) reward ratio of 1:1.5 is recommended; it must make a profit of 114 pips. The supports set at the level of 1.1200 - 1.1165. Therefore, the buyers are going to buy above 1.1200 - 1.1165 with a first target of 1.1230, it might resume to 1.1270. However, the stop loss should never exceed your maximum exposure amounts. Hence, set stop loss below the support of 1.1165. In the short term, the resistance is set at the level of 1.1265 (61.8% of Fibonacci retracement levels in the H1 chart) , so the trend will call for a bearish market at the level of 1.1265 in order to retest the spot of 1.1235 - 1.1240 because there are a minor bearish channel.
- In the H4 chart, the trend is still calling for bullish market because upward trend is still strong. Moreover, the value of the RSI indicator is neutral but seems positive and quiet.
