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

General overview for 08/10/2013 07:45 CET

Yesterday's idea of shorting the golden trendline from 1.0325 with TP at 1.0305 turned out to be profitable so congrats to anyone who took this trade.

As for today, the last cycle of the impulsive wave has been done in five waves, and then a sharp correction was made in for of a ZigZag making at 1.0295, the low of wave ii.

The overall bullish picture is still valid, and as long as 1.0288 is not taken out, the higher prices are anticipated.

In Daily time frame the level of 1.0296 is the 200 DMA and this is the primary dynamic support for this pair.

Further, the bullish bias is confirmed, when SUPPLY ZONE is breached.

Support/Resistance:

1.0349 - 1.0354 - SUPPLY ZONE

1.0337 - WR1

1.0329 - 61%Fibo

1.0306 - Weekly Pivot

1.0288 - Wave (ii) Low

1.0285 - Invalidation Line

Trading recommendations:

As long as 1.0288 holds, the long side of the market should be in play from the current levels with togh SL and possible TP at 1.0337 and 1.0350.