USD/CAD Spot Daily Forecast – 30 October 2014

USDCAD broke trend line support at 1.1155/50 which then acted as resistance for a move towards 1.1110/00 but we bottomed 8 pips early at 1.1118. A strong bounce hit 1.1223. Watch the 1.1220/25 area today as this is the key to direction. We should struggle here today but this looks like a bull flag so be ready to go with a break higher. This would be a positive short term signal & should target 1.1250/55. If we continue higher look for strong resistance at 1.1280/85 & a high for the day likely.

There is a good chance we will fail to beat 1.1220/25 which should trigger a move lower to 1.1180. If we continue lower look for support at 1.1160 but if we cannot bounce from here we could retest support at 1.1118/10. Exit shorts & try longs from here down to excellent short term support at 1.1090/080.

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