Overview:
- The USD/CAD pair is going to call for an uptrend market today. The price will probably move between the levels of 1.3071 and 1.3225 in order to form a range of 154 pips in the coming days. The support is at the level of 1.3071, which represents a weekly pivot point. Therefore, the bulls are going to buy above 1.3071 with the first target of 1.3225. In case the trend can break the resistance at 1.3225, it might resume to 1.3266. A new double top is going to be at the price of 1.3266. On the other hand, the resistance is set at the spot of 1.3225 - 1.3266. So, the trend will call for a bearish market in this area because there is a minor bearish channel.
Observations:
- However, risk to reward ratios are important and should always be calculated. So, a risk (77 pips) reward ratio of 1:1.5 is recommended. It should make a profit of 154 pips.
- The stop loss should never exceed your maximum exposure amounts. Hence, set your stop loss above 1.3052.
