USD/CAD Tests Range Support
Dailyfx | May 14, 2015 12:30PM ET
- The USD/CAD tests support
- Today’s S3 pivot is located at 1.1929
- A move above R4 suggests a bullish reversal
(Created using FXCM’s Marketscope 2.0 charts)
The USD/CAD has started today’s trading inside of a 55 pip range. Price has recently moved off range support, which is found at the S3 pivot at a price of 1.1929. If price remains range bound, a bounce in price would suggest a return towards values of resistance. A move higher at this point would be contrary to this week’s trend however, as the USD/CAD has already declined as much as 225 pips since Monday. Currently, today's range resistance resides at the R3 pivot at 1.1984.
In the event that prices return back in the direction of the trend, traders will watch for a breakout below the S4 pivot at 1.1901. A decline below this point would suggest further weakness for the pair, as prices move towards lower lows. Conversely, a move above the R4 pivot at 1.2011 would also open the USD/CAD to the possibility of a breakout. If prices begin to break through key values of resistance, this would suggest a bullish reversal for the pair.
---Written by Walker England, Trading Instructor
/h2
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.