USD/CAD intraday technical levels and trading recommendations for October 10, 2014


Overview :

Two months ago, the ongoing bearish swing (ilogged in March 2014) was hindered at the price level of 1.0620. This price level corresponded to the lower limit of the channel as well as the backside of a steeper bearish one.

In August, bullish breakout off the movement channel took place. This enabled a bullish Flag pattern to be established. Bullish targets were successfully hit, including price level of 1.1230.

Strong bullish momentum has been expressed for a couple of weeks. Note that breaching price zone of 1.1230-1.1260 and fixation above it triggers new bullish swing.

On the other hand, a break below 1.1100-1.1070 is more likely to happen. This indicates that the bearish correction will extend further towards 1.0980-1.0950 where a key-support zone is depicted on the chart (the lower limit of the bullish channel and 50% Fibonacci level).


The price zone of 1.1250-1.1276 corresponded to previous significant tops on the daily chart. Extensive bearish rejection was expressed as anticipated.

Risky traders can take a SELL entry around 1.1200-1.1245. Bearish targets are located at 1.1080 and 1.0990.

Then, the price zone of 1.0980-1.0950 should be watched for another LONG position to make use of the ongoing bullish trend.

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Intraday technical levels and trading recommendations on GBP/USD for October 10, 2014


Note the depicted Shooting Star daily candlestick that occurred previously around 61.8% Fibonacci level.

Such significant bearish pressure offered SELL positions at retesting that took place few days later.

Note that the bullish rejection initiated when market pushed below 1.6100 and 1.6060 on September 9. Another bearish leg was expressed below 1.6060 (The weekly low is located around 1.5950).

On the other hand, price zone of 1.6100-1.6140 remains a prominent SUPPLY zone to meet the pair. It applied considerable bearish pressure on the pair yesterday resulting in formation of an Inverted Hammer daily candlestick.


4H chart reveals long period of downside movement roughly maintained within the limits of the depicted channel.

Although the recent bullish leg which extended between 1.6060 (the lower limit of the channel) and price levels around 1.6400 looked strong compared to the recent bearish swings, the bears managed to break below 1.6060 on Friday.

This bearish swing was targeting at 1.5900 (site of prominent monthly bottoms). However, the bears just reached 1.5950 when obvious bullish rejection was expressed to push again towards 1.6150.

For risky traders, a valid SELL entry can be taken around the current prices but with a higher risk. Stop loss can be placed above 1.6200.

According to the price action expressed at retesting of price zone of 1.6100-1.6140, the GBP/USD pair is now targeting at 1.5960 and 1.5860 where prominent bottoms were established.

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Intraday technical levels and trading recommendations on EUR/USD for October 10, 2014


The recent bearish slide below 1.2870 invalidated the previous attempt of bullish reversal. Thus, bearish decline towards 1.2680 and 1.2570 took place shortly after achieving the projection targets of the recent flag pattern.

Price action around the current price levels near 1.2560 is again essential to determine the next destination of the EUR/USD pair as the pair looked oversold and was trading beyond the lower limit of the channel before bullish momentum could get it back inside the channel.

Bullish recovery was expressed off 1.2500 to push towards 1.2650 and 1.2700 ( back inside the breached channel ). Thus, a bullish engulfing pattern is depicted on the chart.

Another retesting is taking place towards the origin of the bullish engulfing pattern. A good BUY position can be taken.


The current medium-term bearish trend remains intact as long as the bears keep defending the price zone around 1.2870 (the recent consolidation zone).

A short-term bullish Head and Shoulders pattern was established on the 4H chart as anticipated. 4H fixation above 1.2700 is essential to confirm the reversal.

Another pullback is taking place towards the origin of the bullish Head and Shoulders pattern. A good BUY position can be taken.

Recommendation :

The neckline of the confirmed Head and Shoulders pattern on the 4H chart is being retested today. A valid BUY entry is suggested today. Stop loss should be set as daily closure below 1.2570.

Projection target levels to be visited should be located around 1.2870 and 1.2940 where the upper limit of the channel and significant Fibonacci level are located.

Then price action should be watched again around 1.2900 for another long-term SELL position.

The material has been provided by InstaForex Company -