FX.co ★ USD/CAD H1 Analysis for 07/08/2013

General overview for 07/08/2013 09:30 CET

Wave progression is developing exactly according to the main count: an impulsive wave to the upside has just broken out the SUPPLY area at 1.0400 and it looks like the next meaningfull resistance is at 1.0439 - 1.0445 zone. There is one more resistance along the way: 50% Fibo @ 1.0426 so price might be capped there for some time before upward move will eventually resume.

The level of 1.0400 has become a technical support now and in case of a breakout to the downside, next intraday support is at 1.0386.

Bias is bullish, but traders should't forget about one more possibility of more complex wave (ii) here that I have labeled as alternate WXY count of wave (ii).

Support/Resistance:

1.0439 - 1.0445 - SUPPLY ZONE

1.0426 - 50%Fibo

1.0400 - Technical Support

1.0386 - Intraday Support

1.0354 - Weekly Pivot

1.0334 - Technical support

Trading recommendations:

As long as 1.0386 - 1.0400 support area holds, the long side of the market is preffered with SL below 1.0386 and TP1 at 1.0426 and TP2 at 1.0445.