FX.co ★ USD/CAD H1 Analysis for September 11, 2013

General overview for 11/09/2013 09:45 CET

The price made one more wave to the downside yesterday, and it was counted as an extended wave five of wave five. It resulted in breakingout the triangle line. Later the price has been trying to overcome the lower triangle line and move back above it, but so far it failed. So there is a probabillity that:

- SCENARIO 1: Price will move even lower to the levels of the previous wave A blue of the triangle at 1.0245 before reversal happens. You can see it in H4 chart.

- SCENARIO 2: Price will break back above the lower triangle line and bullish divergence supports this view. You can see it in H1 chart.

Right now, the impulsive development to the downside looks finished, but the key now is to focus on triangle line and trade it.

Support/Resistance:

1.0245 - Previous low of wave A

1.0259 - WS2

1.0312 - WS1

1.0328 - Intraday Low

1.0365 - Triangle line resistrance zone

1.0379 - Technical Resistance

1.0419 - Technical Resistance

1.0435 - Weekly Pivot

Trading recommendations:

There is Bullish Divergence in H1 timetrame and the impulsive structure looks finished, so for intraday scalpers i advise to enter long positions from the current levels with SL below 1.0328 and potential TP1 at 1.0379 and TP2 at 1.0419.