FX.co ★ USD/CAD H1 analysis for September 19, 2013

General overview for 19/09/2013 09:30

The triangle scenario has been invalidated and now it looks like the market wants to develop 3-3-5 ABC blue Irregular Flat pattern of Wave X, making the last wave to the downside as an five wave impulsive pattern.

In lower time frames, traders can see that the price is below WS2 and below Intraday Resistance level at 1.0231, but the latest wave development might be just a part of more complex wave (iv) blue correction, so the price might get back and test this levels again. Only a 1.0272 breakout would put this bearish count into question.

The target level for this decline is the DEMAND area of 1.0152 - 1.0135.

Please, notice the Bullish Divergence on AO oscillator is showing a possible end of the downward move in H4 time frame.

Support/Resistance:

1.0328 - Weekly Pivot

1.0272 - Technical Resistance

1.0255 - WS1

1.0231 - Intraday Resistance

1.0222 - WS2

1.0135 - 1.0152 - DEMAND ZONE

Trading recommendations:

Short positions are preffered from the levels of 1.0200 to 1.0231 with SL above 1.0235 and potential TP at 1.0152.