Thursday, August 29, 2013

Flag pattern formation on USDCAD eyeing 1.06611


Currency Pair:       USDCAD
Recomendations:    BUY
Volatility:                  150
Entry Point:            1.04679
Stop Loss:             1.04179
Take Profit:           1.05679
Support:                1.04454
Resistance:            1.05954
RSI:                       48.26


On the H4 chart of USDCAD, the price is targeting to bounce off a strong support line at 1.04454 for a long position. The resistance level can be found at 1.05954. The price may go up as high as 1.06611 because of a flag pattern to continue its bullish trend.

The 5, 10, and 20 day moving averages of the currency pair in the daily chart is moving below the current price, a clear indication of a bullish momentum. The 5 day moving average is currently moving above the 10 moving average, with the 20 day moving average falling below the 5 and 10 day moving averages.


In the daily chart, RSI(14) is seen to be at the 48.26 mark. With its neutral level, this indicates a higher possibility for an upswing. Hence, a continued uptrend is anticipated for the USDCAD.


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