FX.co ★ USD/CAD H1 Analysis for October 16, 2013

General overview for 16/10/2013 09:00 CET

Wave 4 green has ended 10 pips above wave 1 green top, so that was a very deep pull back but overall no damage has been done. Still the impulsive count is the main one.

Next to the wave 4 green low is impulsive wave progression in five waves up, so this might be first wave to the upside.

Corrective wave (ii) green might be finished OR it is just a wave a of more complex correction. A break out above wave b purple high will confirm temporary strenght and a break out above Intraday Resistance at 1.0389 confirms further strength.

The first target for bulls is SUPPLY ZONE at 1.0410 - 1.0417.

Support/Resistance:

1.0328 - Invalidation Line

1.0360 - Weekly Pivot

1.0382 - Key Level

1.0389 - Intraday Resistance

1.0410 - 1.0417 - SUPPLY ZONE

Trading recommendations:

The bias is still bullish and long positions are in favor now for the area of 1.0375 with SL below 1.0362 and potential TP at 1.0410.