FX.co ★ USD/CAD H1 Analysis for October 9, 2013

General overview for 09/10/2013 06:30 CET

Finally impulsive breakout above SUPPLY ZONE has happened in impulsive fashion and the price has hit 161%Fibo Extension as a target for wave iii.

Now corrective cycle wave iv is developing and more upside wave progression is anticipated. The target for wave v is 1.0386. The target for wave (iii) green is 1.0405.

The first level to provide the support is the previous SUPPLY ZONE at 1.0349 - 1.0354, however only a breakout to the downside below 1.0328 would invalidate the count.

In case this level is hit, the conclusion would be that more complex corrective cycle is still developing.

Support/Resistance:

1.0405 - Wave (iii) green target

1.0386 - Wave v target | WR2 |

1.0372 - Intermediate high

1.0349 - 1.0354 - Technical Support

1.0338 - Techncial Support

1.0328 - Bullish wave progression invalidation line.

Trading recommendation:

Bias is to the upside and buy-the-dip mode should be played here, so long entry at 1.0355 with SL below 1.0328 and TP at 1.0405 is recommended.