USD/CAD Spot Daily Forecast – 06 October 2014

USDCAD beat 1.1178 to signal further gains & made all the way to our upper target of 1.1245/50 before topping at 1.1269. We are closing in on this year’s high of 1.1278. Of course this is absolutely key this week with the risk of a negative double top. It may be wise to exit longs & may be even try shorts despite the strong bull trend but keep stops tight above 1.1300. Be ready then to jump in to longs on a break higher to target 1.1330/35 then 1.1350/55.

Below 1.1235 signals short term weakness & could target support at 1.1220 then 1.1195/90 which could hold the downside. Exit shorts & try longs with stops below 1.1170. Just be aware that a break lower would target good support at 1.1149/45.

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