FX.co ★ USD/CAD H1 Analysis for September 10, 2013

General overview for 10/09/2013 08:30 CET

Five waves to the downside in wave Y brown of wave C green has been done and now the wave C blue of the overall ABCED blue Triangle is done and the price should start to develop wave D blue to the upside. Bullish divergence supports the view.

The first resistance is the black trendline and it needs to be broken to confirm the bottom.

Next resistance is at 1.0379, the former low and wave (iv) area as well.

Last resistance is at 1.0419, the previous wave 4 area of a lower degree cycle.

Please, notice that there is nothing wrong with the count even if the Weekly Pivot will be tested.

On the other hand, only a new low would invalidate the count, making wave iv more complex and time consuming.

Support/Resistance:

1.0354 - Intraday Low

1.0366 - Black trend line resistance area

1.0379 - Technical Resistance

1.0419 - Technical Resistance | Previous wave four area |

1.0435 - Weekly Pivot

Trading recommendations:

Because the impulsive decline looks finished, the long side of the market should be in play from the current levels, with SL below swing low and potential TP at 1.0379 and 1.0419.